Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units

Standard Costs per unit:

Direct materials: 8kg at $6.50 per kg

Direct labour: 4 hours at $7.00 per hour

During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual costs amounted to:

Direct material: 3500kgs at a total cost of $21875

Direct labour: 1720 hours at a total cost of $12212

Required:

Determine the standard material quantity variance for June production

a.

$875 F

b.

$35 U

c.

$875 U

d.

$910 U