Blumenthal Manufacturing makes a product with the following standard costs: In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for July is:

Select one:

a. $828 F

b. $828 U

c. $792 U

d. $792 F

Direct materials. Direct labor Variable overhead Standard Quantity or Hours Standard Price or Rate 3.5 pounds $3.00 per pound $19.00 per hour 0.8 hours $8.00 per hour 0.8 hours