Patterson Company
the Following Information Is for Patterson Company's July

Multiple Choice

Patterson Company
The following information is for Patterson Company's July production:
$\begin{array}{l}\text { Standards: }\\\begin{array}{ll}\text { Material } & 3.0 \text { feet per unit@ } \$ 4.20 \text { per foot } \\\text { Labor } & 2.5 \text { hours per unit@ } \$ 7.50 \text { per hour }\end{array}\end{array}$

$\begin{array}{l}\text { Actual: }\\\begin{array}{ll}\text { Production } & 2,750 \text { units produced during the month } \\\text { Material } & 8,700 \text { feet used; } 9,000 \text { feet purchased @ } \$ 4.50 \text { per foo } \\\text { Labor } & 7,000 \text { direct labor hours@ } \$ 7.90 \text { per hour }\end{array}\end{array}$

(Round all answers to the nearest dollar. )
Refer to Patterson Company.What is the labor rate variance?

A) $3,480 U
B) $3,480 F
C) $2,800 U
D) $2,800 F