Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.9	ounces	$	2.00	per ounce	$	13.80
Direct labor		0.8	hours	$	13.00	per hour	$	10.40
Variable overhead		0.8	hours	$	8.00	per hour	$	6.40

The company reported the following results concerning this product in June.

Originally budgeted output		2,300	units
Actual output		2,800	units
Raw materials used in production		21,900	ounces
Purchases of raw materials		23,000	ounces
Actual direct labor-hours		4,800	hours
Actual cost of raw materials purchases	$	42,000
Actual direct labor cost	$	12,300
Actual variable overhead cost	$	3,150

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 price variance for June is:

Garrison 16e Rechecks 2017-10-31

Multiple Choice

• $4,000 U

• $2,070 U

• $4,000 F

• $2,070 F