Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit

Direct materials 6.6 ounces $ 3.00 per ounce $ 19.80 Direct labor 0.3 hours $ 10.00 per hour $ 3.00 Variable overhead 0.3 hours $ 5.00 per hour $ 1.50

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

Originally budgeted output 2,000 units Actual output 2,500 units Raw materials used in production 13,900 ounces Purchases of raw materials 15,000 ounces Actual direct labor-hours 510 hours Actual cost of raw materials purchases $ 40,000 Actual direct labor cost $ 12,000 Actual variable overhead cost $ 3,000

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 efficiency variance for June is:

Question options:

$900 F

$2,400 U

$900 U

$2,400 F