Item $3$

The following data have been provided by Liggett Corporation:

Budgeted production $7,400$ units

Standard machine$-$hours per unit $6\mathrm{.}6$ machine$-$hours

Standard lubricants rate $ $3\mathrm{.}50$ per machine$-$hour

Standard supplies rate $ $2\mathrm{.}00$ per machine$-$hour

Actual production $7,600$ units

Actual machine$-$hours $($total$)49,840$ machine$-$hours

Actual lubricants cost $($total$)$ $$179,821$

Actual supplies cost $($total$)$ $ $98,933$

Lubricants and supplies are both elements of variable manufacturing overhead.

The variable overhead rate variance for lubricants is closest to:

$$1,120$ F

$$5,381$ F

$$4,261$ U

$$5,381$ U