MC Qu. 105 Hurren Corporation makes a product with the following standard costs:

Hurren Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.4 grams	$8.00 per gram	$35.20
Direct labor	0.7 hours	$19.00 per hour	$13.30
Variable overhead	0.7 hours	$4.00 per hour	$2.80

The company reported the following results concerning this product in June.

Originally budgeted output	6,600	units
Actual output	6,500	units
Raw materials used in production	28,380	grams
Actual direct labor-hours	4,500	hours
Purchases of raw materials	31,800	grams
Actual price of raw materials purchased	$8.10	per gram
Actual direct labor rate	$19.90	per hour
Actual variable overhead rate	$3.70	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 price variance for June is:

$3,180 F

$2,860 F

$3,180 U

$2,860 U