Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours 2.0 grams 0.9 hours 0.9 hours Direct materials Direct labor Variable overhead Standard Price or Rate $ 7.00 per gram $17.00 per hour $ 3.00 per hour The company produced 4,500 units in January using 10,150 grams of direct material and 2.130 direct labor-hours. During the month, the company purchased 10,720 grams of the direct material at $7.35 per gram. The actual direct labor rate was $17.90 per hour and the actual variable overhead rate was $2.80 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 quantity variance for January is: Multiple Choice $8,050 U O $8,453