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	9.6 liters	$5.00 per liter	$48.00
Direct labor	0.3 hours	$16.00 per hour	$4.80
Variable overhead	0.3 hours	$3.00 per hour	$.90

The company budgeted for production of 2,600 units in June, but actual production was 2,700 units. The company used 25,650 liters of direct material and 760 direct labor-hours to produce this output. The company purchased 27,650 liters of the direct material at $4.90 per liter. The actual direct labor rate was $16.50 per hour and the actual variable overhead rate was $2.70 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:

$960 F

$1,350 U

$960 U

$1,350 F