QUESTION 4 The Ketchum Company has established standards as follows: Direct material.. Direct labor.. variable overhead.. 3 pounds @ $4/pound = $12 per unit 2 hours @ $8/hour = $16 per unit 2 hours @ $5/hour = $10 per unit Actual production figures for the past year were as follows: Units produced.... Direct material used...1,600 pounds Direct material purchased (3,000 pounds. $12,300 ...500 50 hours $7,790 $4,655 Variable overhead cost incurred The labor efficiency variance is: A. $400 F B. $800 F C. $800 U OD $500 F