Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.1ounces$2.00per ounce$12.20Direct labor0.2hours$12.00per hour$2.40Variable overhead0.2hours$8.00per hour$1.60

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

Originally budgeted output3,500unitsActual output3,000unitsRaw materials used in production21,100ouncesPurchases of raw materials22,200ouncesActual direct labor-hours490hoursActual cost of raw materials purchases$42,200Actual direct labor cost$13,500Actual 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