The Hershey Company is an American multinational company and one of the largest chocolate manutacturers in the wond The Hershey Canes favorite product. Hershey's management has established the following standards Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 14 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor hours The following data are available for October 3.750 units of compound were produced during the month There was no beginning direct materials inventory . Direct materials purchased: 12,000 ounces for $225,000 The ending direct materials inventory was 2,000 ounces. Direct labor-hours worked: 5,600 hours at a cost of $67,200. Variable manufacturing overhead costs incurred amounted to $18,200, Variable manufacturing overhead applied to products: $18,375, . . . . The variable overhead efficiency variance for October is: (AR SR) AH