The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 1.2 hours Standard variable overhead rate $ 19.80 per hour The following data pertain to operations for the last month: Actual hours 2,100 hours Actual total variable manufacturing overhead cost $ 40,740 Actual output 1,600 units What is the variable overhead rate variance for the month?

Multiple Choice

$840 F

$768 U

$2,724 U

$3,492 U