Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.1 ounces $ 4.00 per ounce $ 28.40 Direct labor 0.8 hours $ 15.00 per hour $ 12.00 Variable overhead 0.8 hours $ 4.00 per hour $ 3.20 The company reported the following results concerning this product in June. Originally budgeted output 2,500 units Actual output 3,000 units Raw materials used in production 18,500 ounces Purchases of raw materials 19,400 ounces Actual direct labor-hours 4,600 hours Actual cost of raw materials purchases $ 45,100 Actual direct labor cost $ 12,500 Actual variable overhead cost $ 3,250 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 materials price variance for June is:

Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Standard Price or Cost Per Hours Rate Unit 7.1 ounces $ 4.00 per ounce $28.40 0.8 hours $15.00 per hour $12.00 0.8 hours $ 4.00 per hour $ 3.20 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 2,500 units 3,000 units 18,500 ounces 19,400 ounces 4,600 hours $ 45,100 $ 12,500 $ 3,250 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 materials price variance for June is: Multiple Choice $32,500 F $32,500 U o $1.746F $1,746 F 0 $1,746 U $1,746 U