Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.5 ounces 0.2 hours 0.2 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 2.00 per ounce $ 23.00 per hour $ 6.00 per hour Standard Cost Per Unit $ 13.00 $ 4.60 $ 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 2,700 units 2,800 units 19,380 ounces 21,400 ounces 500 hours $ 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. Multiple Choice $616 Favorable $616 Unfavorable $550 Favorable $550 Unfavorable