Novelli Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 1.3 hours per unit. The variable overhead rate standard is $10.50 per hour. In September, the company produced 1,500 units using 1,940 direct labor-hours. The actual variable overhead rate was $11.70 per hour.

The variable overhead rate variance for September is:

$2,328 F

$2,445 U

$2,328 U

$2,445 F