Markus, Inc

Markus, Inc. produces a specialized machine part used in forklifts. For last year's operations, the following data were gathered: Markus employs a standard costing system. During the year, a variable overhead rate of $5.00 was used. The labor standard requires 0.50 hours per unit produced. The variable overhead spending and efficiency variances are, respectively

A) $10,000 U and $7,500 U.
B) $10,000 F and $7,500 U.
C) $7,500 U and $10,000 F.
D) $10,000 F and $7,500 F.
E) None of these.