Dirickson Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

Inputs

Standard Quantity or Hours per Unit of Output

Standard Price or Rate

Direct materials

7.6

ounces

$

9.40

per ounce

Direct labor

0.10

hours

$

18.00

per hour

Variable manufacturing overhead

0.10

hours

$

5.30

per hour

The company has reported the following actual results for the product for July:

Actual output		7,600	units
Raw materials purchased		63,000	ounces
Actual cost of raw materials purchased	$	541,800
Raw materials used in production		57,750	ounces
Actual direct labor-hours		820	hours
Actual direct labor cost	$	16,072
Actual variable overhead cost	$	4,592

The variable overhead efficiency variance for the month is closest to:

Multiple Choice

• $336 U

• $318 U

• $336 F

• $318 F