1. Milar Corporation makes a product with the following standard costs:

   	Standard Quantity or Hours			Standard Price or Rate
   Direct materials		7.7	pounds	$	4.00	per pound
   Direct labor		0.1	hours	$	20.00	per hour
   Variable overhead		0.1	hours	$	4.00	per hour

   In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. 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 January is:

   		$80 U
   		$84 F
   		$84 U
   		$80 F