The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output		8.1	hours
Standard variable overhead rate	$	14.85	per hour

The following data pertain to operations for the last month:

Actual hours		8,600	hours
Actual total variable manufacturing overhead cost	$	130,720
Actual output		1,000	units

What is the variable overhead rate variance for the month?

Multiple Choice

• $3,010 F

• $10,435 U

• $3,010 U

• $10,435 F