Kibodeaux Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Inputs
Direct materials	8.9 liters	$6.00 per liter	$53.40
Direct labor	0.5 hours	$23.00 per hour	$11.50
Variable overhead	0.5 hours	$3.00 per hour	$1.50

The company budgeted for production of 3,300 units in June, but actual production was 3,400 units. The company used 29,920 liters of direct material and 1,640 direct labor-hours to produce this output. The company purchased 31,920 liters of the direct material at $5.90 per liter. The actual direct labor rate was $23.60 per hour and the actual variable overhead rate was $2.60 per hour. 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 June is:

$2,040 F

$890 F

$890 U

$2,040 U