Gilder Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	3.2 grams	$4.00 per gram	$12.80
Direct labor	0.8 hours	$13.00 per hour	$10.40
Variable overhead	0.8 hours	$4.00 per hour	$3.20

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

Originally budgeted output	8,700	units
Actual output	8,600	units
Raw materials used in production	26,990	grams
Purchases of raw materials	30,600	grams
Actual direct labor-hours	6,400	hours
Actual cost of raw materials purchases	$125,460
Actual direct labor cost	$88,960
Actual variable overhead cost	$23,680

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 labor efficiency variance for June is:

$6,240 U

$6,672 F

$6,672 U

$6,240 F