Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Standard Price or Cost Per Rate Unit Direct materials Direct labor Variable overhead Hours 7.5 ounces 0.9 hours 0.9 hours $ 3.00 per ounce $22.50 $17.10 $ 7.20 $19.00 per hour $ 8.00 per hour 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 2,900 units 2,500 units 20,700 ounces 21,800 ounces 4,700 hours $42,300 $ 12,900 $ 3,450 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased he materials price variance for June is