Eliezrie Corporation makes a product with the following standard costs: STANDARD QUANTITY OR HOURS:

Direct materials6.5 kilos

Direct labor.0.3 hours

Variable overhead.0.3 hours

STANDARD PRICE OR RATE:

Direct materials$1.00 per kilo

Direct labor.$10.00 per hour

Variable overhead.$4.00 per hour

STANDARD COST PER UNIT:

Direct materials$6.50

Direct labor.$3.00

Variable overhead.$1.20

In January the company's budgeted production was 7,400 units but the actual production was 7,500 units. The company used 45,580 kilos of the direct material and 2,030 direct labor-hours to produce this output. During the month, the company purchased 48,500 kilos of the direct material at a cost of $53,350. The actual direct labor cost was $18,473 and the actual variable overhead cost was $7,714. 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:

$3,487 F

$3,170 U

$3,170 F

$3,487 U