A Question 17 Tharaldson Corporation makes a product with the following standard costs. Standard Quantity or Hours Standard Price of Rate Standard Cost Per Unit Direct materials 6.8 Ounces $4.00 per Ounce $ 2720 Direct labor 0.7 hours $12.00 per hour $ 8.40 Variable overhead 0.7 hours $7.00 per hour $ 490 The company reported the following results concerning this product in June Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours 2.200 units 2,700 units 16,900 ounces 18,000 ounces 4,200 hours Actual cost of raw materials purchases $45,000 Actual direct labor cost $12,200 Actual variable overhead cost $3,100 The company applies variable overhead on the basis of direct labor-hours. The direct materiais parchases water is comind when the materials are purchased. he company reported the following results concerning this product in June. Originally budgeted output 2,200 units Actual output 2.700 units Raw materials used in production 16.900 ounces Purchases of raw materials 18.000 ounces Actual direct labor-hours 4200 hours Actual cost of raw materials purchases $45.000 Actual direct labor cost Actual variable overhead cost $12,200 $3,100 The company applies variable overhead on the basis of direct labor hours. The direct materih potes when the materials are purchased The materials price variance for June is: $27,000 F $27.000 U $1,620 F $1,620 U