Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		5.2	ounces	$	3.00	per ounce	$	15.60
Direct labor		0.3	hours	$	14.00	per hour	$	4.20
Variable overhead		0.3	hours	$	5.00	per hour	$	1.50

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

Originally budgeted output		4,400	units
Actual output		4,600	units
Raw materials used in production		23,000	ounces
Purchases of raw materials		23,500	ounces
Actual direct labor-hours		580	hours
Actual cost of raw materials purchases	$	39,500
Actual direct labor cost	$	14,400
Actual variable overhead cost	$	4,200

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

• $10,360 F

• $11,200 U

• $10,360 U

• $11,200 F

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 5.2 ounces 0.3 hours 0.3 hours Standard Cost Per Unit $15.60 $ 4.20 $ 1.50 Standard Price or Rate $ 3.00 per ounce $ 14.00 per hour $ 5.00 per hour Direct materials Direct labor Variable overhead 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 4,400 units 4,600 units 23,000 ounces 23,500 ounces 580 hours $ 39,500 $ 14,400 $ 4,200 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