Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.1 ounces 0.2 hours 0.2 hours Direct materials Direct labor Variable overhead Standard Standard Price or Cost Per Rate Unit $ 2.00 per ounce $12.20 $12.00 per hour $ 2.40 $ 8.00 per hour $ 1.60 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 ounce 22,200 ounces 490 hours $ 42,200 $ 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 labor efficiency variance for June is: The labor efficiency variance for June is: Multiple Choice O $2,520 F O $1,320 F O $2,520 U $1,320 U