The Upton Company Uses a Standard Costing System in Which

Multiple Choice

The Upton Company uses a standard costing system in which variable overhead is assigned to production on the basis of standard direct labor-hours. Data for the month of February include the following:
Variable overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labor-hours worked: 6,840
-The variable overhead rate variance is:

A) $820 F
B) $820 U
C) $740 F
D) $740 U