Doogan Corporation makes a product with the following standard costs:

	Standard Quantity or Hours		Standard Price or Rate
Direct materials	7.4	grams	$ 2.00	per gram
Direct labor	0.5	hours	$ 20.00	per hour
Variable overhead	0.5	hours	$ 7.00	per hour

The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour.

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 materials price variance for January is:

a.) $13,320 U

b.) $13,320 F

c.) $11,544 F

d.) $11,544 U