Ketone Inc. produces small engines. For last year's operations, the following data were gathered:

Units produced	110,000
Direct labor	120,000 hours @ $10.00
Actual variable overhead	$1,000,000

Ketone Inc. employs a standard costing system. During the year, a variable overhead rate of $5.00 was used. The labor standard requires 1 hour per unit produced. The variable overhead spending and efficiency variances are:

a.$176,000 U and $19,000 U.

b.$400,000 U and $50,000 U.

c.$200,000 U and $40,000 F.

d.$150,000 U and $24,000 F.

e.None of these choices are correct.