Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.1 ounces $ 4.00 per ounce $ 28.40 Direct labor 0.2 hours $ 11.00 per hour $ 2.20 Variable overhead 0.2 hours $ 4.00 per hour $ 0.80 The company reported the following results concerning this product in June. Originally budgeted output 2,500 units Actual output 3,000 units Raw materials used in production 21,500 ounces Purchases of raw materials 22,500 ounces Actual direct labor-hours 560 hours Actual cost of raw materials purchases $ 45,100 Actual direct labor cost $ 12,500 Actual variable overhead cost $ 3,250 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:

Multiple Choice $6,340 F $306 F $306 U $6,340 U