Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.2ounces$ 7.00per ounce$ 43.40Direct labor0.7hours$ 10.00per hour$ 7.00Variable overhead0.7hours$ 7.00per hour$ 4.90

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

Originally budgeted output3,400unitsActual output2,800unitsRaw materials used in production20,000ouncesPurchases of raw materials21,100ouncesActual direct labor-hours4,500hoursActual cost of raw materials purchases$ 41,900 Actual direct labor cost$ 13,400 Actual variable overhead cost$ 3,700

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 quantity variance for June is:

Multiple Choice

$18,480 F

$5,242 U

$18,480 U

$5,242 F