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Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.7

Tharaldson Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 5.7 ounces $ 2.00 per ounce $ 11.40
Direct labor 0.2 hours $ 11.00 per hour $ 2.20
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 3,900 units
Actual output 3,500 units
Raw materials used in production 20,700 ounces
Purchases of raw materials 21,800 ounces
Actual direct labor-hours 530 hours
Actual cost of raw materials purchases $ 42,600
Actual direct labor cost $ 13,900
Actual variable overhead cost $ 3,950

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:

A. 1,870 F

B. 2,750 U

C. 2,750 F

D. 1,870 U

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