The Koski Company has established standards as follows: Direct material 3.00 pounds @ $5.50/pound = $16.50 per unit Direct labor 2.10 hours @ $9.50/hour = $19.95 per unit Variable overhead 2.10 hours @ $6.50/hour = $13.65 per unit Actual production figures for the past year were as follows: Units produced 650 Direct materials used 2,540 pounds Direct materials purchased (4,500 pounds) $25,200 Direct labor cost (1,100 hours) $10,670 Variable overhead cost incurred $7,040 The labor rate variance is (Do not round intermediate calculations.): $2,298 U $220 F $2,298 F $220 U

The Koski Company has established standards as follows:

Direct material	3.00 pounds @ $5.50/pound = $16.50 per unit
Direct labor	2.10 hours @ $9.50/hour = $19.95 per unit
Variable overhead	2.10 hours @ $6.50/hour = $13.65 per unit

Actual production figures for the past year were as follows:

Units produced	650
Direct materials used	2,540 pounds
Direct materials purchased (4,500 pounds)	$25,200
Direct labor cost (1,100 hours)	$10,670
Variable overhead cost incurred	$7,040

The labor rate variance is (Do not round intermediate calculations.):

	$2,298 U
	$220 F
	$2,298 F
	$220 U

Answer
$220 U