Majer Corporation makes a product with the following standard costs: Standard Cost Per Standard Quantity or Hours Standard Price or Rate $ 5.00 per ounce 11.00 per hour $ 5.00 per hour Unit Direct materials Direct labor Variable overhead 6.2 ounces 0.6 hours 0.6 hours $31.00 6.60 3.00 The company reported the following results concerning this product in February Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 5,500 units 5,600 units 33,000 ounce 2,020 hours 35,400 ounce $ 7.10 per ounce $2.40 per hour $ 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 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 $6,695 F $6,700 F