ABC Manufacturing Co. uses standard costs. Standard costs and actual costs for direct materials and direct labor for the manufacture of 3,000 units during 20Y6 were as follows:

Specifics Standard Costs Actual Costs

Direct materials 18,000 lbs. at $4.50 per lbs. 18,500 lbs. at $4.35 per lbs.

Direct labor 7,500 hours at $12.00 per hr. 7,420 hours at $12.30 per hr.

*Each unit requires 2.5 hours of direct labor.

Using the information above, what is the direct labor time variance?

1. ($960) U

2. $960 F

3. ($960) F