Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Standard Cost Per Unit Direct materials Direct labor Variable overhead Rate 3.0 ounces $700 per ounce 0.7 hours$20.00 per hour 0.7 hours $5.00 per hour $21.00 $14.00 $3.50 The company reported the following results conceming this product in December 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 4,400 units 4,200 units 12,820 ounces 3,160 hours 4,500 ounces $6.80 per ounce $18.30 per hour $5.10 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 labor efficiency variance for December is O $4,026 F O $4,026 U O $4,400 F 0 $4,400 U