Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 7.4 grams $ 2.00 per gram direct labor 0.5 hours $ 20.00 per hour variable overhead 0.5 hours $ 7.00 per 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 variable overhead efficiency variance for january is:
multiple choice
a. $1,496 f
b. $1,496 u
c. $1,540 u
d. $1,540 f