Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit

Direct materials $5\mathrm{.}6$ ounces $ $3\mathrm{.}00$ per ounce $ $16\mathrm{.}80$

Direct labor $0\mathrm{.}3$ hours $ $10\mathrm{.}00$ per hour $ $3\mathrm{.}00$

Variable overhead $0\mathrm{.}3$ hours $ $7\mathrm{.}00$ per hour $ $2\mathrm{.}10$

The company reported the following results concerning this product in June.

Originally budgeted output $4,000$ units

Actual output $4,000$ units

Raw materials used in production $20,000$ ounces

Purchases of raw materials $22,800$ ounces

Actual direct labor$-$hours $540$ hours

Actual cost of raw materials purchases $ $42,700$

Actual direct labor cost $ $14,000$

Actual variable overhead cost $ $3,900$

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 June is:

Multiple Choice

$$132$ F

$$120$ U

$$120$ F

$$132$ U