Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.5 ounces $ 2.00 per ounce $ 11.00 Direct labor 0.6 hours $ 11.00 per hour $ 6.60 Variable overhead 0.6 hours $ 8.00 per hour $ 4.80 The company reported the following results concerning this product in June. Originally budgeted output 4,100 units Actual output 4,100 units Raw materials used in production 20,500 ounces Purchases of raw materials 21,600 ounces Actual direct labor-hours 4,800 hours Actual cost of raw materials purchases $ 42,800 Actual direct labor cost $ 14,100 Actual variable overhead cost $ 4,050 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 price variance for June is:

Multiple Choice

$1,944 F

$400 U

$1,944 U

$400 F