Elite Brand Company Uses Standard Costs for Their Manufacturing Division

Elite Brand Company uses standard costs for their manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: $\begin{array}{ll}\text { Production volume } & 6,000 \text { units } \\\text { Estimated variable overhead costs } & \$ 13,500 \\\text { Estimated direct labor hours } & 600 \text { hours }\end{array}$ At the end of the year, actual data were as follows:
$\begin{array}{ll}\text { Production volume } & 4,000 \text { units } \\\text { Actual variable overhead costs } & \$ 15,000 \\\text { Actual direct labor hours } & 480 \text { hours }\end{array}$
- Calculate the variable overhead cost variance.

A) $13,500 U
B) $15,000 F
C) $35,000 U
D) $4,200 F