Montgomery Company has developed the following flexible budget formulas for its four overhead items:

		Variable rate per
Overhead item	Fixed Cost	direct labor hour
Maintenance	$10,000	$ 3.00
Power	$ 1,500	$ 0.30
Indirect labor cost		$12.00
Equipment lease	$ 7,000
Total	$18,500	$15.30

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:

Overhead item	Actual costs
Maintenance	$14,000
Power	$ 2,200
Indirect labor cost	$70,000
Equipment lease	$ 7,000
Total costs	$93,200

Using an after-the-fact flexible budget, calculate the variance for power.

	a.	$1,000 F
	b.	$1,010 U
	c.	$3,000 U
	d.	$1,010 F
	e.	None of these.