Ortman Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateDirect materials7.7liters$12.00per literDirect labor1.1hours$27.00per hourVariable overhead1.1hours$3.00per hour

The company reported the following results concerning this product in May:

Actual output2,700unitsRaw materials used in production20,520litersActual direct labor-hours2,850hoursPurchases of raw materials22,530litersActual price of raw materials purchased$ 7.90per literActual direct labor rate$26.00per hourActual variable overhead rate$2.90per hour

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 May is:

Noreen 4e Rechecks 2017-24-03

$288 F

$288 U

$285 F

$285 U