TB MC Qu. 9-314 Tharaldson Corporation makes ... Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.1 ounces 0.6 hours 2.6 hours Standard Price or Rate $ 8.00 per ounce $ 12.00 per hour $ 8.00 per hour Standard Cost Per Unit $48.80 $ 7.20 $ 4.80 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 Actual direct labor cost Actual variable overhead cost 3,500 units 3,000 units 20,500 ounces 21,000 ounces 4,100 hours $ 42,800 $ 13,500 $ 3,750 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 materials quantity variance for June is: Multiple Choice The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. 42 The materials quantity variance for June is: Multiple Choice $17.600 F $4.400 U $17.600 U $4,400 F