Juhasz Corporation makes a product with the following standards for direct labor and variable overhead:

	Standard Quantity or Hours			Standard Price or Rate
Direct labor		0.70	hours	$	37.00	per hour
Variable overhead		0.70	hours	$	5.70	per hour

In August the company produced 9,600 units using 6,850 direct labor-hours. The actual variable overhead cost was $36,990. The company applies variable overhead on the basis of direct labor-hours.

The variable overhead efficiency variance for August is:

Multiple Choice

$702 U

$741 U

$702 F

$741 F