MC Qu. 303 Epley Corporation makes a product with...

Epley Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	2.0 pounds	$7.00 per pound
Direct labor	0.6 hours	$18.00 per hour
Variable overhead	0.6 hours	$2.00 per hour

In July the company produced 4,800 units using 10,240 pounds of the direct material and 2,220 direct labor-hours. During the month, the company purchased 10,810 pounds of the direct material at a cost of $76,690. The actual direct labor cost was $38,234 and the actual variable overhead cost was $11,935.

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 July is: