Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	5.3	ounces	$ 2.00	per ounce	$ 10.60
Direct labor	0.2	hours	$ 13.00	per hour	$ 2.60
Variable overhead	0.2	hours	$ 4.00	per hour	$ .80

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

Originally budgeted output	4,300	units
Actual output	4,300	units
Raw materials used in production	21,500	ounces
Purchases of raw materials	22,000	ounces
Actual direct labor-hours	570	hours
Actual cost of raw materials purchases	$ 39,400
Actual direct labor cost	$ 14,300
Actual variable overhead cost	$ 4,050

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

$1,782 U

$1,782 F

$1,770 F

$1,770 U