Problem:
Alcott Industries manufactures a specialized electronic component with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 5.30 grams $ 2.80 per gram Direct labor 0.40 hours $ 29.00 per hour Variable overhead 0.40 hours $ 3.80 per hour The company reported the following results concerning this product in July. Actual output 4,800 units Raw materials used in production 13,170 grams Actual direct labor-hours 1,700 hours Purchases of raw materials 13,900 grams Actual price of raw materials purchased $ 3.00 per gram Actual direct labor rate $ 13.20 per hour Actual variable overhead rate $ 3.90 per hour Variable overhead is allocated based on direct labor-hours at Alcott Industries. The variance for direct material purchases is calculated at the time of acquisition. The variable overhead rate variance for July is: Group of answer choices $836 F $858 U $858 F $836 U