Doogan Corporation makes a product with the following standard costs:

Standard Quantity or Hours Standard Price or Rate

Direct materials $2\mathrm{.}0$ grams $ $7\mathrm{.}00$ per gram

Direct labor $1\mathrm{.}5$ hours $ $15\mathrm{.}00$ per hour

Variable overhead $1\mathrm{.}5$ hours $ $3\mathrm{.}00$ per hour

The company produced $4,500$ units in January using $10,210$ grams of direct material and $2,190$ direct labor$-$hours. During the month, the company purchased $10,780$ grams of the direct material at $$7\mathrm{.}20$ per gram. The actual direct labor rate was $$15\mathrm{.}60$ per hour and the actual variable overhead rate was $$2\mathrm{.}90$ 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 quantity variance for January is:

Multiple Choice

$$8,470$ F

$$8,712$ U

$$8,712$ F

$$8,470$ U