Kartman Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.8	pounds	$	7.30	per pound	$	49.64
Direct labor		0.5	hours	$	27.00	per hour	$	13.50
Variable overhead		0.5	hours	$	4.30	per hour	$	2.15

In June the company's budgeted production was 3,700 units but the actual production was 3,800 units. The company used 22,450 pounds of the direct material and 2,320 direct labor-hours to produce this output. During the month, the company purchased 25,700 pounds of the direct material at a cost of $173,180. The actual direct labor cost was $57,321 and the actual variable overhead cost was $9,631.

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 variable overhead rate variance for June is:

Multiple Choice

• $345 U

• $345 F

• $283 U

• $283 F