Hurren Corporation makes a product with the following standard costs:

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 rate variance for June is:

$1,437 U

$1,422 F

$1,422 U

$1,437 F

Hurren Corporation makes a product with the following standard costs: Standard Quantity orStandard Price or Standard Cost Hours 9.10 grams 0.4 hours 0.4 hours Rate $7.00 per gram $15.00 per hour $700 per hour Per Unit Direct materials Direct labor Variable overhead $63.70 $6.00 $2.80 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 Actual cost of raw materials purchases $262,440 Actual direct labor cost Actual variable overhead cost 7100 units 7,200 units 40,700 grams 47100 grams 640hours $8,178 $3,144 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 rate varlance for June is: O $1,437 U O $1,422 F O $1,422 u O $1,437 F