Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	9.60 grams	$6 per gram	$57.60
Direct labor	0.1 hours	$20 per hour	$2
Variable overhead	0.1 hours	$6 per hour	$0.60

The company reported the following results concerning this product in June.

Originally budgeted output	8,100 units
Actual output	8,200 units
Raw materials used in production	41,200 grams
Purchases of raw materials	48,100 grams
Actual direct labor-hours	690 hours
Actual cost of raw materials purchases	$263,190
Actual direct labor cost	$8,303
Actual variable overhead cost	$3,274

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 June is:

a. $5,517 F

b. $5,497 F

c. $5,517 U

d. $5,497 U

Do not copy from Chegg and give complete answer with explanation