Latimer Textiles Inc

Multiple Choice

Latimer Textiles Inc. Latimer Textiles Inc. incurred actual variable overhead expenses of $27,000 in the current year for the production of 8,000 units. Variable overhead was applied at a rate of $1.75 per direct labor hour and 2 direct labor hours were budgeted for each unit. The company used 17,400 direct labor hours for production.
Refer to the Latimer Textiles Inc. information above. What was Latimer's variable overhead efficiency variance?

A) $3,450 U
B) $3,450 F
C) $2,450 U
D) $2,450 F