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Landram Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 liters $7.00 per liters

Landram Corporation makes a product with the following standard costs:

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

The company produced 4,600 units in April using 10,270 liters of direct material and 2,250 direct labor-hours. During the month, the company purchased 10,840 liters of the direct material at $7.25. per liter. The actual direct labor rate was $15.50 per hour and the actual variable overhead rate was $4.90 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 April is:

$7,490 U

$7,758 U

$7,758 F

$7,490 F

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