Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 pounds	$7.00 per pound
Direct labor	0.9 hours	$15.00 per hour
Variable overhead	0.9 hours	$5.00 per hour

In July the company produced 4,600 units using 10,270 pounds of the direct material and 2,250 direct labor-hours. During the month, the company purchased 10,840 pounds of the direct material at a cost of $76,720. The actual direct labor cost was $38,237 and the actual variable overhead cost was $11,938.

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 July is:

rev: 11_06_2015_QC_CS-32670

$700 U

$840 F

$7,490 U

$700 F