Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		7.3	ounces	$	3.00	per ounce	$	21.90
Direct labor		0.2	hours	$	17.00	per hour	$	3.40
Variable overhead		0.2	hours	$	6.00	per hour	$	1.20

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

Originally budgeted output		2,700	units
Actual output		2,800	units
Raw materials used in production		20,500	ounces
Purchases of raw materials		21,600	ounces
Actual direct labor-hours		480	hours
Actual cost of raw materials purchases	$	42,100
Actual direct labor cost	$	12,700
Actual variable overhead cost	$	3,350

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:

Answers:

A: $1,360 U

B: $1,020 U

C: $1,360 F

D $1,020 F