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	0.5 hours	$13.00 per hour
Variable overhead	0.5 hours	$7.00 per hour

In July the company produced 4,500 units using 10,110 pounds of the direct material and 2,090 direct labor-hours. During the month, the company purchased 10,680 pounds of the direct material at a cost of $76,560. The actual direct labor cost was $38,257 and the actual variable overhead cost was $11,958.

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

$1,660 U

$1,800 F

$7,770 U

$1,660 F