Karen Systems allocated manufacturing overhead based on machine hours. Each connector should require $10$ machine hours. According to the static budget, they expect to incur $800$ machine hours per month $(8010hr$ per$),$ $$5000$ in variable overhead, $$7,535$ in fixed overhead. During the month, they actually used $500$ machine hours to make $95$ connectors, spent $$5,000$ in variable overhead and $$6,400$ in fixed manufacturing overhead.

What is the variable cost variance? $($Round to nearest cent$)$

$4,688$ F

$1,875$ U

$2,813$ F

$938$ F