Solly Corporation produces a product for national distribution. Standards for the product are:

Materials: 12 ounces per unit at 60 per ounce.

Labor: 2 hours per unit at $8 per hour.

During the month of December, the company produced 1,000 units. Information for the month follows:

Materials: 14,000 ounces purchased and used at a total cost of $7,700.

Labor: 2,500 hours worked at a total cost of $20,625.

The labor rate variance is:

		$625 U
		$500 F
		$500 U
		$625 F