Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs	Standard Quantity or Hours per Unit of Output			Standard Price or Rate
Direct materials		7.6	ounces	$	9.40	per ounce
Direct labor		0.10	hours	$	18.00	per hour
Variable manufacturing overhead		0.10	hours	$	5.30	per hour

The company has reported the following actual results for the product for July:

Actual output		7,600	units
Raw materials purchased		63,000	ounces
Actual cost of raw materials purchased	$	541,800
Raw materials used in production		57,750	ounces
Actual direct labor-hours		820	hours
Actual direct labor cost	$	16,072
Actual variable overhead cost	$	4,592

The labor efficiency variance for the month is closest to:

Multiple Choice

a) $1,080 U

b) $1,080 F

c) $1,176 U

d) $1,176 F