Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.1	ounces	$	2.00	per ounce	$	12.20
Direct labor		0.2	hours	$	12.00	per hour	$	2.40
Variable overhead		0.2	hours	$	8.00	per hour	$	1.60

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		20,500	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 variable overhead efficiency variance for June is:

Multiple Choice

• $902 F

• $880 U

• $902 U

• $880 F

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 6.1 ounces 0.2 hours 0.2 hours Standard Cost Per Unit $12.20 $ 2.40 $ 1.60 Standard Price or Rate $ 2.00 per ounce $ 12.00 per hour $ 8.00 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 3,500 units 3,000 units 20,500 ounces 22,200 ounces 490 hours $ 42,200 $ 13,500 $ 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 variable overhead efficiency variance for June is