Finch Company established a predetermined variable overhead cost rate at $$16\mathrm{.}90$ per direct labor hour. The actual variable overhead cost rate was $$15\mathrm{.}30$ per hour. The planned level of labor activity was $76,475$ hours of labor. The company actually used $80,500$ hours of labor.

Required

a$.$ Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable $($F$)$ or unfavorable $($U$).$

Answer is complete but not entirely correct.