Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allows 3 direct labor hours per unit produced. Overhead is applied using direct lal hours. The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead. The actual res for the year are as follows: Units produced: 318,000 965,000 hours @ $12.00/hour Direct labor: Variable overhead: $3,302,000 Fixed overhead: $998,000 Calculate the variable overhead efficiency variance O $36,850 U O s80,000 uU O $36,850F O $4,000 U O None of these