Tharaldson Corporation makes a product with the following standard costs: Standard Standard Standard Price or Quantity Cost Per or Unit Hours Rate $2.00 per ounce Direct materials 6.1 ounces $12.20 $ 2.40 $ 1.60 Direct labor 0.2 hours $12.00 per hour $8.00 per hour Variable overhead 0.2 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output 3,500 units 3,000 units Raw materials used in production 21,100 ounces Purchases of raw materials 22,200 ounces Actual direct labor-hours 490 hours Actual cost of raw materials purchases $ 42,200 Actual direct labor cost $13,500 Actual variable overhead cost $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 rate variance for June is: Multiple Choice $7,620 F $7,620 U $2,295 U $2,295 F