Dexter Company uses a standard costing system with direct labors hours being the basis (cost driver) for applying overhead.

Dexter Corporationss standard cost card shows the following for one unit of product Alpha.

	Std Qty	Std price (rate)	Std. cost
Direct materials	1.5 pounds	$30.00 per pound	$45.00
Direct labor	1.0 hours	$20.00 per hour	$20.00
Variable Overhead	1.0 hours	$2.50 per DL hour	$ 2.50
Fixed Overhead	1.0 hours	$7.50 per DL hour	$ 7.50
			$75.00

During the month of July, the following was recorded by the company relative to its production of product Alpha:

Planned level of production	3,100 units
Actual level of production	3,000 units
Direct materials purchased	5,000 pounds
Cost of direct materials purchased	$152,000
Direct materials placed into production	4,400 pounds
Direct labor incurred	3,050 hours
Actual direct labor cost	$60,390
Actual variable overhead cost	$6,405
Actual fixed overhead cost	$24,400

Compute the Direct Materials quantity variance for the month.

• $3,000 F

• $3,040 F

• $3,040 U

• $3,000 U