Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	10.0 pounds	$9.5 per pound
Direct labor	0.8 hours	$32.00 per hour
Variable overhead	0.8 hours	$15.00 per hour

In July the company produced 3,430 units using 13,720 pounds of the direct material and 2,864 direct labor-hours. During the month, the company purchased 14,480 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $91,236 and the actual variable overhead cost was $41,188.

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:

A) $412 F

B) $412 U

C) $3,428 U

D) $3,428 F