MC Qu. 108 Hurren Corporation makes a product with the following standard costs:

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	5.0 grams	$4.00 per gram	$20.00
Direct labor	0.8 hours	$15.00 per hour	$12.00
Variable overhead	0.8 hours	$4.00 per hour	$3.20

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

Originally budgeted output	6,200	units
Actual output	6,100	units
Raw materials used in production	28,440	grams
Actual direct labor-hours	4,600	hours
Purchases of raw materials	32,400	grams
Actual price of raw materials purchased	$4.10	per gram
Actual direct labor rate	$15.90	per hour
Actual variable overhead rate	$3.70	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 June is:

$1,120 U

$1,036 U

$1,036 F

$1,120 F