Adams Company established a predetermined variable overhead cost rate at $$17\mathrm{.}50$

per direct labor hour. The actual variable overhead cost rate was $$15\mathrm{.}80$ per hour.

The planned level of labor activity was $76,475$ hours of labor. The company actually

used $80,500$ hours of labor.

Required

a$.$ Determine the total flexible budget variable overhead cost variance and indicate

the effect of the variance by selecting favorable $($F$)$ or unfavorable $($U$).$

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$