Oddo Corporation makes a product with the following standard costs: Standard Quantity Standard Price or Standard Cost Per or Hours Rate Unit Direct materials 3.0 ounces $7.00 per ounce $21.00 Direct labor 0.7 hours $20.00 per hour $14.00 Variable 0.7 hours $5.00 per hour $3.50 overhead The company reported the following results concerning this product in December. Originally budgeted output 4,400 units Actual output 4,200 units Raw materials used in production 12,820 ounces Actual direct labor-hours 3,160 hours Purchases of raw materials 14,500 ounces Actual price of raw materials $6.80 per ounce Actual direct labor rate $18.30 per hour Actual variable overhead rate $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