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 rate variance for February is:

A. 1,456 F

B. 1,461 F

C. 1,456 U

D. 1,461 U

Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.2 ounces 0.5 hours 0.5 hours Direct materials Direct labor Variable overhead Standard Cost Per Unit $24.80 $ 8.50 $ 2.00 Standard Price or Rate $ 4.00 per ounce $ 17.00 per hour $ 4.00 per hour The company reported the following results concerning this product in February Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 4,900 units 5,000 units 30,200 ounces 2,080 hours 32,600 ounces $ 67.10 per ounce $ 57.60 per hour $ 3.30 per hour