Majer 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	ounces	$	4.00	per ounce	$	26.00
Direct labor		0.5	hours	$	16.00	per hour	$	8.00
Variable overhead		0.5	hours	$	4.00	per hour	$	2.00

The company reported the following results concerning this product in February.

Originally budgeted output		5,500	units
Actual output		8,300	units
Raw materials used in production		30,600	ounces
Actual direct labor-hours		1,960	hours
Purchases of raw materials		33,000	ounces
Actual price of raw materials	$	72.90	per ounce
Actual direct labor rate	$	82.40	per hour
Actual variable overhead rate	$	4.60	per hour

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 February is:

Garrison 16e Rechecks 2017-10-31

rev: 04_13_2018_QC_CS-124401

Multiple Choice

$8,760 U

$8,755 F

$8,760 F

$8,755 U