Sapon Systems allocates manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static? budget, Sapon expected to incur the? following:

400 machine hours per month ?(50 connectors x 8 machine hours per? connector)

$4,000 in variable manufacturing overhead cost

$8,525 in fixed manufacturing overhead costs

During? August, Sapon actually used 400 machine hours to make 125 connectors and spent $5,500 in variable manufacturing costs and $8,800 in fixed manufacturing overhead costs. Calculate the variable overhead cost variance for Sapon.

A. $6,000 F

B. $7,500 F

C. $1,500 U

D. $4,500 F