TB MC Qu. 9-296 (Algo) Tharaldson Corporation makes... Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 6.2 ounces $ 3.00 per ounce Direct labor 0.5 hours $ 10.00 per hour Variable overhead 0.5 hours $ 7.00 per hour The company reported the following results concerning this product in June. Standard Cost Per Unit $ 18.60 $ 5.00 $ 3.50 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 3,400 units 2,800 units 20,000 ounces 22,300 ounces 480 hours $ 42,100 $ 13,400 $ 3,700 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: Multiple Choice $2.423 F o $8600 $2.423U $8,600 U