Kennedy Corporation makes a product with the following standard costs: The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pounds of direct material and 980 direct labor-hours to produce this output. The company purchased 21,700 pounds of the direct material at $6.70 per pound. The actual direct labor rate was $19.20 per hour and the actual variable overhead rate was $1.80 per hour. 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:

Select one:

a. $800 U

b. $784 U

c. $800 F

d. $784 F

Direct materials.. Direct labor Variable overhead. Standard Quantity or Hours 8.2 pounds 0.4 hours 0.4 hours Standard Price or Rate $7.00 per pound $20.00 per hour $2.00 per hour Standard Cost Per Unit $57.40 $8.00 $0.80