Morgan Manufacturing makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost per Unit Direct materials Direct labor Variable overhead 6.5 kilos 0.3 hours 0.3 hours $1.00 per kilo $10.00 per hour $4.00 per hour $6.50 $3.00 $1.20 In January the company's budgeted production was 7,400 units but the actual production was 7,400 units. The company used 45,580 kilos of the direct material and 2,300 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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 January is: a. $320.00 O b. $3,280.00 c. $27,120.00 O d. $18,080.00