Milar Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate
Direct materials		13.5	pounds	$	13.00	per pound
Direct labor		0.8	hours	$	39.00	per hour
Variable overhead		0.8	hours	$	18.50	per hour

In January the company produced 3,500 units using 14,000 pounds of the direct material and 2,920 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,760. The actual direct labor cost was $113,461 and the actual variable overhead cost was $51,828.

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 January is:

a. $419 F

b. $419 U

c. $4,261 U

d. $4,261 F