D) $1216 F

Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 7.6 ounces 0.10 hours 0.10 hours Standard Price or Rate $ 9.40 per ounce $ 18.00 per hour $ 5.30 per hour The company has reported the following actual results for the product for July: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 7,600 units 63,000 ounces $ 541,800 57,750 ounces 820 hours $ 16,072 $ 4,592 The labor rate variance for the month is closest to: Multiple Choice $1,312 F $1,312 U O O $1,216 U