Tharaldson Corporation makes a product with the following standard costs: 39 Direct materials Direct labor Variable overhead Standard Quantity or Hours 5.8 ounces 0.5 hours 0.5 hours Standard Standard Price or Cost Per Rate Unit $ 3.00 per ounce $17.40 $12.00 per hour $ 6.00 $ 5.00 per hour $ 2.50 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 3,800 units 3,400 units 22,000 ounces 22,500 ounces 520 hours $ 42,500 $ 13,800 $ 3,900 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 company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is compu when the materials are purchased. The labor rate variance for June is: Multiple Choice $1,909 F $7,560 F $1,909 U $7,560 U