Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.4 ounces $ 2.00 per ounce $ 14.80 Direct labor 0.3 hours $ 18.00 per hour $ 5.40 Variable overhead 0.3 hours $ 7.00 per hour $ 2.10 The company reported the following results concerning this product in June. Originally budgeted output 2,800 units Actual output 2,900 units Raw materials used in production 19,000 ounces Purchases of raw materials 21,700 ounces Actual direct labor-hours 490 hours Actual cost of raw materials purchases $ 42,200 Actual direct labor cost $ 12,800 Actual variable overhead cost $ 3,400 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:

Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.4 ounces 0.3 hours 0.3 hours Standard Standard Price or Cost Per Rate Unit $ 2.00 per ounce $14.80 $18.00 per hour $ 5.40 $ 7.00 per hour $ 2.10 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 2,800 units 2,900 units 19,000 ounces 21,700 ounces 490 hours $ 42,200 $ 12,800 $ 3,400 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: The labor late Vallahce Tol Juhe Is. Multiple Choice 0 $1,595 F $3,980 F 0 $1,595 U $1,595 U 0 $3,980 U $3,980 U