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	0.8	hours	$ 18.00	per hour	$ 14.40
Variable overhead	0.8	hours	$ 7.00	per hour	$ 5.60

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

Originally budgeted output	2,800	units
Actual output	2,400	units
Raw materials used in production	19,000	ounces
Purchases of raw materials	21,700	ounces
Actual direct labor-hours	4,400	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 materials price variance for June is:

Multiple Choice

$1,953 U

$1,200 U

$1,953 F

$1,200 F