Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.60 per pound	$	7.80
Direct labor	5 hours at $7.50 per hour		37.50
Actual results:
Units produced	8,000 units
Direct material purchased	26,600 pounds at $2.80	$	74,480
Direct material used	23,700 pounds at $2.80		66,360
Direct labor	40,700 hours at $7.30		297,110

Assume that the company computes variances at the earliest point in time. The direct-material quantity variance is:

Multiple Choice

• $780F.

• $780U.

• $6,760U.

• $6,760F.

• None of the answers is correct.