Valera Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect labor 0.4hours$21.00per hour$8.40 Variable overhead 0.4hours$6.00per hour$2.40 The company budgeted for production of 5,300 units in July, but actual production was 5,400 units. The company used 2,130 direct labor-hours to produce this output. The actual variable overhead rate was $6.10 per hour. The company applies variable overhead on the basis of direct labor-hours.The variable overhead efficiency variance for July is:
A. $183 U
B. $183 F
C. $180 F
D. $180 U
Answer: C
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