Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price orRateStandard Cost Per UnitDirect materials 6.6?ounces$2.00?per ounce$13.20?Direct labor 0.9?hours$17.00?per hour$15.30?Variable overhead 0.9?hours$2.00?per hour$1.80?The company reported the following results concerning this product in February. Originally budgeted output 4500?unitsActual output 5400?unitsRaw materials used in production 30,600?ouncesActual direct labor-hours 2120?hoursPurchases of raw materials 29,200?ouncesActual price of raw materials$107.10?per ounceActual direct labor rate$97.60?per hourActual variable overhead rate$6.20?per hourThe company applies variable overhead on the basis of direct labor-hours. The
direct materials purchases variance is computed when the materials are purchased.The variable overhead efficiency variance for February is:
A. $5480 U
B. $5475 F
C. $5480 F
D. $5475 F
Answer: C
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