Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.3 grams	$6.00 per gram	$25.80
Direct labor	1.8 hours	$18.00 per hour	$32.40
Variable overhead	1.8 hours	$5.00 per hour	$9.00

The company reported the following results concerning this product in June.

Originally budgeted output	7,000	units
Actual output	6,900	units
Raw materials used in production	28,370	grams
Purchases of raw materials	31,700	grams
Actual direct labor-hours	4,400	hours
Actual cost of raw materials purchases	$193,370
Actual direct labor cost	$83,160
Actual variable overhead cost	$20,680

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The materials price variance for June is:

$2,858 U

$3,170 U

$3,170 F

$2,858 F

Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.3 grams $6.00 per gram $25.80 Direct labor 1.8 hours $18.00 per hour $32.40 Variable overhead 1.8 hours $5.00 per hour $9.00 The company reported the following results concerning this product in June. Originally budgeted output 7,000 units Actual output 6,900 units Raw materials used in production 28,370 grams Purchases of raw materials 31,700 grams Actual direct labor-hours 4,400 hours Actual cost of raw materials purchases $193,370 Actual direct labor cost $83,160 Actual variable overhead cost $20,680 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is: $2,858 U $3,170 U $3,170 F $2,858 F