Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours 7.3 ounces 0.2 hours 0.2 hours Standard Cost Per Unit $21.90 $ 3.40 $ 1.20 Standard Price or Rate $ 3.00 per ounce $ 17.00 per hour $ 6.00 per hour Direct materials Direct labor Variable overhead The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 2,700 units 2,800 units 20,500 ounces 21,600 ounces 480 hours $ 42,100 $ 12,700 $ 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 rate variance for June is: Multiple Choice $1,723 F $4,540 F $1,723 U $4,5400