Cost standards for one unit of product no. C77:
Direct material	3 pounds at $2.80 per pound	$	8.40
Direct labor	5 hours at $7.20 per hour		36.00
Actual results:
Units produced	7,900 units
Direct material purchased	26,300 pounds at $3.00	$	78,900
Direct material used	23,400 pounds at $3.00		70,200
Direct labor	40,400 hours at $7.00		282,800

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

Multiple Choice

• $840F.

• $840U.

• $7,280U.

• $7,280F.

• None of the answers is correct.