3.5 grams Direct materials Standard Quantity or Hours Standard Price or Rate $ 1.00 per gram Direct labor 0.7 hours 11.00 per hour Variable overhead 0.7 hours $ 2.00 per hour The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate 3,000 units 11,370 grams 1,910 hours 12,100 grams $ 1.20 per gram $ 11.40 per hour $ 2.10 per hour Actual variable overhead rate The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when t materials are purchased. The labor rate variance for July is: Select one: O a. $764 F O b. $764 U Oc. $840 F