Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.2	ounces	$	5.00	per ounce	$	31.00
Direct labor		0.6	hours	$	11.00	per hour	$	6.60
Variable overhead		0.6	hours	$	5.00	per hour	$	3.00

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

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

Originally budgeted output		5,500	units
Actual output		5,600	units
Raw materials used in production		33,000	ounces
Actual direct labor-hours		2,020	hours
Purchases of raw materials		33,500	ounces
Actual price of raw materials	$	7.10	per ounce
Actual direct labor rate	$	2.40	per hour
Actual variable overhead rate	$	5.20	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:

Multiple Choice

• $6,700 U

• $6,650 F

• $6,700 F

• $6,650 U