The Marina Company has established standards as follows: Direct material: 3 pounds per unit @ $4 per pound = $12 per unit Direct labor: 2 hours per unit @ $8 per hour = $16 per unit Variable manufacturing overhead: 2 hours per unit @ $5 per hour = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

Units produced	600 units
Direct materials used	2,000 pounds
Direct material purchased (3,000 pounds)	$11,400
Direct labor cost (1,100 hours)	$9,240
Variable manufacturing overhead cost incurred	$5,720

The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.

The materials price variance is: A. $400 U B. $400 F C. $600 F D. $600 U

The labor rate variance is: A. $480 F B. $480 U C. $440 F D. $440 U