Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials. Direct labor Variable overhead Standard Cost Per 5.8 ounces 0.5 hours 0.5 hours $ 3.00 per ounce $ 12.00 per hour $5.00 per hour Unit $17.40 $ 6.00 $ 2.50 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production 3,800 units 3,400 units 20,800 ounces Purchases of raw materials 21,900 ounces Actual direct labor-hours 520 hours Actual cost of raw materials purchases 42,500 Actual direct labor cost Actual variable overhead cost 13,800 3,900 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: