MC Qu. 109 Hurren Corporation makes a product with the following standard costs:

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.2 grams	$4.00 per gram	$16.80
Direct labor	0.8 hours	$11.00 per hour	$8.80
Variable overhead	0.8 hours	$6.00 per hour	$4.80

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

Originally budgeted output	7,200	units
Actual output	7,100	units
Raw materials used in production	28,360	grams
Actual direct labor-hours	5,600	hours
Purchases of raw materials	31,600	grams
Actual price of raw materials purchased	$4.10	per gram
Actual direct labor rate	$11.90	per hour
Actual variable overhead rate	$5.70	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 June is:

$1,680 U

$1,704 U

$1,680 F

$1,704 F