Tharaldson Corporation makes a product with the following standard costs:
able[[, able[[Standard],[Quantity or],[Hours]],Standard Price or Rate,Standard Cost],[Direct materials,5.9 ounces,$2.00 per ounce,$11.80
Tharaldson Corporation makes a product with the following standard costs Standard Quantity or Standard Cost Hours Direct materials Standard Price or Rate Per Unit 5.9 ounces Direct labor $ 2.00 per ounce $11.80 0.4 hours $ 10.00 per hour Variable overhead $4.00 0.4 hours $ 4.00 per hour $1.60 The company reported the following results concerning this product in June. Originally budgeted output 3,700 units 3,300 units Raw materials used in production 20,900 ounces Purchases of raw materials 22,000 ounces Actual direct labor-hours 510 hours Actual cost of raw materials purchases $42,400 Actual direct labor cost $13,709 Actual variable overhead cost $3,850
The labor rate variance for June is:
Multiple Choice
$2.037U
$8,600 F
$2.037F
$8,600U