Stopyra Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Budgeted variable manufacturing overhead	$ 28,200
Budgeted fixed manufacturing overhead	$ 89,280
Budgeted hours	12,000	labor-hours
Actual production (a)	16,000	units
Standard hours per unit (b)	0.60	labor-hours
Standard hours allowed for the actual production (a) (b)	9,600	labor-hours
Actual variable manufacturing overhead	$ 26,967
Actual fixed manufacturing overhead	$ 74,280
Actual hours	8,900	labor-hours

The variable overhead efficiency variance is:

Multiple Choice

• $1,645 U

• $2,121 U

• $1,645 F

• $2,121 F