Milar Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials $7\mathrm{.}0$ pounds $ $6\mathrm{.}50$ per pound

Direct labor $0\mathrm{.}8$ hours $ $26\mathrm{.}00$ per hour

Variable overhead $0\mathrm{.}8$ hours $ $12\mathrm{.}00$ per hour

In January the company produced $3,370$ units using $13,480$ pounds of the direct material and $2,816$ direct labor$-$hours. During the month, the company purchased $16,900$ pounds of the direct material at a cost of $$14,240.$ The actual direct labor cost was $$72,810$ and the actual variable overhead cost was $$32,380.$

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$.$ $$2,714$ U

B$.$ $$2,714$ F

C$.$ $$406$ F

D$.$ $$406$ U