Zacher Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.3 hours $27.00 per hour $8.10 Variable overhead 0.3 hours $11.50 per hour $3.45 In February the company's budgeted production was 4,700 units, but the actual production was 4,980 units. The company used 1,320 direct labor-hours to produce this output. The actual variable overhead cost was $16,143. The company applies variable overhead on the basis of direct labor-hours.

The variable overhead rate variance for February is:

$1006 F

$1006 U

$963 F

$963 U