Austin Brands Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the master budget for variable overhead costs included the following data:

At the end of the year, actual data were as follows: What is the variable overhead rate variance? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

A) $15,000 F B) $4,687 F C) $15,000 U D) $3,571 U

Production volume Budgeted variable overhead costs Budgeted direct labor hours 6,300 units $15,000 630 hours Production volume Actual variable overhead costs Actual direct labor hours 4,200 units $15,000 480 hours