Cheerful Colors allocates manufacturing overhead based on direct labor hours. Each batch of crayons should require 1 direct labor hour. According to the static budget, the company expects to incur the following: 1,000 DLHrs per month, $7,500 in variable manufacturing overhead, and $5,000 in fixed manufacturing overhead. During June, Cheerful Colors actually used 950 direct labor hours to make 1,100 batches of crayons and spent $8,000 in variable manufacturing costs and $6,000 in fixed manufacturing costs. Cheerful Colors' variable overhead efficiency variance was (Round intermediary calculations to the nearest cent and your final calculation to the nearest whole dollar.) OA. $1,125 U O B. $1,125 F O C. $421 U O D. $421 F