Alcott Industries manufactures a specialized electronic component with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 3.5 grams $ 1.00 per gram Direct labor 0.7 hours $ 11.00 per hour Variable overhead 0.7 hours $ 2.00 per hour The company reported the following results concerning this product in July. Actual output 3,000 units Raw materials used in production 11,370 grams Actual direct labor-hours 1,910 hours Purchases of raw materials 12,100 grams Actual price of raw materials purchased $ 1.20 per gram Actual direct labor rate $ 11.40 per hour Actual variable overhead rate $ 2.10 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:
a. $870 U
b. $1,044 U
c. $870 F
d. $1,044 F