Ketone inc. produces small engines. for last year's operations, the following data were gathered: units produced 110,000 direct labor 120,000 hours @ $10.00 actual variable overhead $1,000,000 ketone inc. employs a standard costing system. during the year, a variable overhead rate of $5.00 was used. the labor standard requires 1 hour per unit produced. the variable overhead spending and efficiency variances are: a.$200,000 u and $40,000 f. b.$150,000 u and $24,000 f. c.$176,000 u and $19,000 u. d.$400,000 u and $50,000 u. e. none of these choices are correct.