Doogan Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateDirect materials 7.4grams$2.00per gramDirect labor 0.5hours$20.00per hourVariable overhead 0.5hours$7.00per hour?The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.?The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.?The labor efficiency variance for January is:
A. $4,246 F
B. $4,400 F
C. $4,400 U
D. $4,246 U
Answer: B
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