Elite Brand Company uses standard costs for their manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: Production volume 6,000 units Estimated variable overhead costs $13,500 Estimated direct labor hours 600 hours At the end of the year, actual data were as follows: Production volume 4,000 units Actual variable overhead costs $15,000 Actual direct labor hours 480 hours Calculate the variable overhead cost variance.

Select one:

A. $13,500 U

B. $15,000 F

C. $4,200 F

D. $35,000 U