Irving Corporation makes a product with the following standards for direct labor and variable overhead:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct labor		0.2	hours	$	34.00	per hour	$	6.80
Variable overhead		0.2	hours	$	7.00	per hour	$	1.40

In November the company's budgeted production was 7,300 units, but the actual production was 7,100 units. The company used 1,490 direct labor-hours to produce this output. The actual variable overhead cost was $9,834. The company applies variable overhead on the basis of direct labor-hours.

The variable overhead rate variance for November is:

Multiple Choice

• $596 F

• $596 U

• $568 F

• $568 U