Underfoot Products uses standard costing. The following information about overhead was generated during May:

Standard variable overhead rate	$2 per machine hour
Standard fixed overhead rate	$1 per machine hour
Actual variable overhead costs	$361,000
Actual fixed overhead costs	$175,000
Budgeted fixed overhead costs	$190,000
Standard machine hours per unit produced	10
Good units produced	18,000
Actual machine hours	200,000

Compute the variable overhead variance.

	a.	$21,000 (U)
	b.	$11,000 (F)
	c.	$1,000 (U)
	d.	$21,000 (F)

Standard unit costs generally do not include which of the following?

	a.	Indirect materials costs
	b.	Depreciation on machinery
	c.	Direct materials costs
	d.	President's salary