Tharaldson Corporation makes a product with the following standard costs Standard Standard Quantity or Standard Price or Cost Per Rate Unit Hours 5.8 ounces $ 3.00 per $ 12.00 per $ 5.00 per $17.40 $ 6.00 Direct materials ounce Direct labor 0.5 hours hour 0.5 hours $ 2.50 Variable overhead hour The company reported the following results concerning this product in June. Originally budgeted output Actual output 3,800 units 3,400 units Raw materials used in production 22,000 ounces Purchases of raw materials 23,000 ounces Actual direct labor-hours 520 hours $ 42,500 $ 13,800 $ 3,800 Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 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 rate variance for June is: Multiple Choice $1,212 U