M&C Pharma Corporation makes a product with the following standards for direct labor and variable overhead:

	Standard Quantity	Standard Price
Direct labor	0.1 hours	$18.00 per hour
Variable overhead	0.1 hours	$5.00 per hour

In May the company produced 2,800 units using 300 direct labor-hours. The actual variable overhead cost was $1,620. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for May is:

a)

$112 U

b)

$112 F

c)

$120 F

d)

$120 U