QUESTION $11$

Miguez Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Direct materials

Direct labor

Variable overhead

$2\mathrm{.}3$ liters

$0\mathrm{.}7$ hours

$0\mathrm{.}7$ hours

Standard Price or Rate

$$7\mathrm{.}00$ per liter

$$22\mathrm{.}00$ per hour

$$2\mathrm{.}00$ per hour

Standard Cost Per Unit

$$16\mathrm{.}10$

$$15\mathrm{.}40$

$$1\mathrm{.}40$

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 September is:

$$175U$

$$168U$

$$175F$

$$168F$