Question 20 Morgan Manufacturing makes a product with the following standard costs: Not yet Direct materials Direct labor Variable overhead standard Quantity or Hours Standard Price or Rate Standard Cost per Unit $6.50 $3.00 $1.20 6.5 kilos 0.3 hours 0.3 hours $1.00 per kilo $10.00 per hour $4.00 per hour Points out of 3 F Flag question in January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,400 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: Select one: O a. $27,900.00 O b. $600.00 O c. $18,600.00 O d. $3,600.00