Tharaldson Corporation makes a product with the following standard costs:

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

$2,500$ units

$3,000$ units

$21,500$ ounces

$22,500$ ounces

$560$ hours

$$45,100$

$$12,500$

$$3,250$

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

$$306$ F

$$6,340$ U

$$306$ U

$$6,340$ F