Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.2	ounces	$	4.00	per ounce	$	24.80
Direct labor		0.5	hours	$	17.00	per hour	$	8.50
Variable overhead		0.5	hours	$	4.00	per hour	$	2.00

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

Originally budgeted output		4,900	units
Actual output		5,000	units
Raw materials used in production		30,200	ounces
Actual direct labor-hours		2,080	hours
Purchases of raw materials		32,600	ounces
Actual price of raw materials	$	67.10	per ounce
Actual direct labor rate	$	57.60	per hour
Actual variable overhead rate	$	3.30	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 variable overhead rate variance for February is:

Multiple Choice

• $1,456 F

• $1,461 F

• $1,456 U

• $1,461 U