Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate
Direct materials	7.6	grams	$ 2.20	per gram
Direct labor	0.6	hours	$ 22.00	per hour
Variable overhead	0.6	hours	$ 7.20	per hour

The company produced 5,400 units in January using 39,510 grams of direct material and 2,400 direct labor-hours. During the month, the company purchased 44,600 grams of the direct material at $1.90 per gram. The actual direct labor rate was $21.30 per hour and the actual variable overhead rate was $7.00 per hour.

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 variable overhead rate variance for January is:

$480 U

$648 F

$480 F

$648 U