Reed Company employs standard costing and applies overhead on the basis of direct labor hours. The standards and actual operating data for the month are as follows:

Standards
Direct labor hours per unit	2.5 hours
Variable overhead per direct labor hour	$1.75
Fixed overhead per direct labor hour	$3.10
Budgeted variable overhead	$21,875
Budgeted fixed overhead	$38,750
Standard hours allowed	11,250 hours
Budgeted hours	12,500 hours

Actual
Direct labor hours	10,000 hours
Variable overhead	$26,250
Fixed overhead	$38,000

The volume variance is:

	A.	$3,875 UF
	B.	none of these
	C.	$3,875 F
	D.	$4,750 F
	E.	$4,750 UF