Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 7.6 ounces 0.7 hours 0.7 hours Standard Price or Rate $ 4.00 per ounce $ 10.00 per hour $ 9.00 per hour Standard Cost Unit $ 30.40 $ 7.00 $ 6.30 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 3,000 units 2,600 units 20,000 ounces 22,500 ounces 3,500 hours $ 41,500 $ 13,000 $ 3,500 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 $443 Unfavorable $443 Favorable $960 Favorable $960 Unfavorable