Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.50 per pound	$	7.50
Direct labor	5 hours at $7.50 per hour		37.50
Actual results:
Units produced	7,800 units
Direct material purchased	26,000 pounds at $2.70	$	70,200
Direct material used	23,100 pounds at $2.70		62,370
Direct labor	40,100 hours at $7.30		292,730

Use the information to compute the following variances. The direct-labor rate variance is:

Multiple Choice

• $7,800 F.

• $7,950 F.

• $8,020 F.

• $8,000 U.

• None of the answers is correct.