Handerson Corporation makes a product with the following standard costs: Direct materials. 936 Direct labor Variable overhead Standard Quantity or Hours 8.5 kilos 0.4 hours Standard Price or Rate $ 6.00 per kilo. $20.00 per hour 0.4 hours $ 6.00 per hour The company reported the following results concerning this product in August. Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 3,200 units 29,030 kilos 31,600 kilos 1,160.hours $195,920 $ 22,7361 $ 7,540 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 August is: 2 Multiple Choice $10,980 F $11,346 U $10,980 U $11,346 F