Kartman Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	6.5	pounds	$ 7.00	per pound	$ 45.50
Direct labor	0.6	hours	$ 24.00	per hour	$ 14.40
Variable overhead	0.6	hours	$ 4.00	per hour	$ 2.40

In June the company's budgeted production was 3,400 units but the actual production was 3,500 units. The company used 22,150 pounds of the direct material and 2,290 direct labor-hours to produce this output. During the month, the company purchased 25,400 pounds of the direct material at a cost of $170,180. The actual direct labor cost was $57,021 and the actual variable overhead cost was $8,931.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead efficiency variance for June is:

		$741 F
		$760 U
		$760 F
		$741 U