Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit

Direct materials $6\mathrm{.}1$ ounces $ $2\mathrm{.}00$ per ounce $ $12\mathrm{.}20$

Direct labor $0\mathrm{.}2$ hours $ $12\mathrm{.}00$ per hour $ $2\mathrm{.}40$

Variable overhead $0\mathrm{.}2$ hours $ $8\mathrm{.}00$ per hour $ $1\mathrm{.}60$

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

Originally budgeted output $3,500$ units

Actual output $3,000$ 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 efficiency variance for June is:

Multiple Choice

$$2,520$ F

$$1,320$ U

$$2,520$ U

$$1,320$ F