Assume the following information appears in the standard cost card for a company that makes only one product:

Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct materials $5$ pounds $ $11\mathrm{.}00$ per pound $ $55\mathrm{.}00$

Direct labor $2$ hours $ $18\mathrm{.}20$ per hour $ $36\mathrm{.}40$

Variable manufacturing overhead $2$ hours $ $3\mathrm{.}00$ per hour $ $6\mathrm{.}00$

During the most recent period, the following additional information was available:

$20,000$ pounds of material was purchased at a cost of $$10\mathrm{.}50$ per pound.

All of the material that was purchased was used to produce $3,900$ units.

$8,000$ direct labor$-$hours were recorded at a total cost of $$132,000.$

What is the direct labor rate variance?

Multiple Choice

$$13,600$ F

$$6,800$ U

$$13,600$ U

$$6,800$ F