Landram Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 kilos	$7.00 per kilo
Direct labor	1.6 hours	$12.00 per hour
Variable overhead	1.6 hours	$6.00 per hour

In March the company produced 5,000 units using 10,340 kilos of the direct material and 2,320 direct labor-hours. During the month, the company purchased 10,910 kilos of the direct material at a cost of $76,790. The actual direct labor cost was $38,244 and the actual variable overhead cost was $11,945.

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 materials price variance for March is:

$280 U

$420 F

$420 U

$280 F

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Standard hours per unit of output	3.40	machine-hours
Standard variable overhead rate	$10.75	per machine-hour

The following data pertain to operations for the last month:

Actual hours	9,200	machine-hours
Actual total variable manufacturing overhead cost	$95,800
Actual output	2,500	units

What is the variable overhead efficiency variance for the month?

$3,952 U

$7,525 U

$7,433 F

$7,433 U