Ortman Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateDirect materials6.3liters$8.00per literDirect labor0.8hours$13.00per hourVariable overhead0.8hours$1.00per hour

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

Actual output1,300unitsRaw materials used in production8,060litersActual direct labor-hours990hoursPurchases of raw materials9,350litersActual price of raw materials purchased$ 6.50per literActual direct labor rate$12.20per hourActual variable overhead rate$0.50per 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 labor rate variance for May is:

Noreen 4e Rechecks 2017-24-03

$819 U

$819 F

$792 F

$792 U