Reference no: EM132996574

Zacher Corporation makes a product with the following standards for direct labor and variable overhead:

               Standard Quantity or Hours-------------------Standard Price or Rate---------------------Standard Cost Per Unit

Direct labor                   0.3 hours                                         $24.00 per hour                                                  $7.20

Variable overhead            0.3 hours                                         $5.00 per hour                                                   $1.50

In February the company's budgeted production was 6,900 units, but the actual production was 7,000 units. The company used 1,980 direct labor-hours to produce this output. The actual variable overhead cost was $10,296. The company applies variable overhead on the basis of direct labor-hours.

Problem 1: The variable overhead efficiency variance for February is:

a) $600 F
b) $624 F
c) $600 U
d) $624 U