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Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.5

Gilder Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 5.5 grams $4.00 per gram $22.00
Direct labor 0.7 hours $10.00 per hour $7.00
Variable overhead 0.7 hours $9.00 per hour $6.30

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

Originally budgeted output 5,700 units
Actual output 5,600 units
Raw materials used in production 28,490 grams
Purchases of raw materials 32,900 grams
Actual direct labor-hours 3,500 hours
Actual cost of raw materials purchases $134,890
Actual direct labor cost $38,150
Actual variable overhead cost $30,450

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:

-$4,578 U

-$4,200 U

-$4,578 F

-$4,200 F

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