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	1.6 hours	$14.00 per hour
Variable overhead	1.6 hours	$2.00 per hour

The company produced 4,600 units in April using 10,220 liters of direct material and 2,200 direct labor-hours. During the month, the company purchased 10,790 liters of the direct material at $7.40. per liter. The actual direct labor rate was $14.50 per hour and the actual variable overhead rate was $1.70 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.