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

Actual output		4,100	units
Raw materials used in production		29,930	kilos
Purchases of raw materials		32,500	kilos
Actual direct labor-hours		1,150	hours
Actual cost of raw materials purchases	$	204,920
Actual direct labor cost	$	23,636
Actual variable overhead cost	$	8,440

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 August is:

Multiple Choice

• $505 F

• $505 U

• $720 U

• $720 F