NOTE: These case facts will be used for multiple problems. Thorson Corp makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Standard Cost Rate Per Unit Direct materials 6.5ounces $ 2.00 per $ 13.00 ounce Direct labor 0.2hours $ 23.00 per $ 4.60 Variable overhead hour $ 6.00 per hour 0.2hours $ 1.20 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 Actual direct labor cost Actual variable overhead cost 2,700units 2,800 units 19,380ounces 21,400ounces 500hours $ 40,660 $ 12,050 $ 3,100 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 variable overhead rate variance for June is: Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,70 2,80 19,380 21,400 500 $ 40,660 $ 12,050 $ 3,100 The company applies variable overhead on the basis of direct labor-hours. purchases variance is computed when the materials are purchased. The variable overhead rate variance for June is: $112F $100 U $100F $112