The Upton Company Uses a Standard Costing System in Which

Multiple Choice

The Upton Company uses a standard costing system in which variable overhead is assigned to production on the basis of standard direct labor-hours. Data for the month of February include the following:
Variable overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labor-hours worked: 6,840
-The variable overhead efficiency variance is:

A) $430 U
B) $740 F
C) $1,120 F
D) $950 U