Problem

Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 3.0 ounces $7.10 per ounce $21.30 Direct labor 0.6 hours $21.00 per hour $12.60 Variable overhead 0.6 hours $6.00 per hour $3.60 The company reported the following results concerning this product in December. Originally budgeted output 4,410 units Actual output 4,210 units Raw materials used in production 13,000 ounces Actual direct labor-hours 2,896 hours Purchases of raw materials 14,690 ounces Actual price of raw materials $6.90 per ounce Actual direct labor rate $18.40 per hour Actual variable overhead rate $6.10 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. What is the variable overhead efficiency variance for December?