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 per $ 23.00 hour $ 4.60 Variable overhead 0.2hours per $ 6.00 hour $ 1.20 The company reported the following results concerning this product in June. Originally budgeted output 2,700 units Actual output 2,800 units Raw materials used in production 19,380ounces Purchases of raw materials 21,400ounces Actual direct labor-hours 500hours Actual cost of raw materials purchases $ 40,660 Actual direct labor cost $ 12,050 Actual variable overhead cost $ 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 labor efficiency variance for June is: $1,446 U $1.380 U Originally budgeted output 2,700 units Actual output 2,800 units Raw materials used in production 19,380ounce: Purchases of raw materials 21,400ounce: Actual direct labor-hours 500hours Actual cost of raw materials purchases $ 40,660 Actual direct labor cost $ 12,050 Actual variable overhead cost $ 3,100 The company applies variable overhead on the basis of direct labor-hours. The purchases variance is computed when the materials are purchased. The labor efficiency variance for June is: $1,446 U $1,380U $1,446 F $1,380 F