MC Qu. 92 Landram Corporation makes a product with the following standard costs:

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	1.4 hours	$16.00 per hour
Variable overhead	1.4 hours	$4.00 per hour

The company produced 4,400 units in April using 10,200 liters of direct material and 2,180 direct labor-hours. During the month, the company purchased 10,770 liters of the direct material at $7.10. per liter. The actual direct labor rate was $16.65 per hour and the actual variable overhead rate was $4.00 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:

$9,800 F

$9,940 F

$9,800 U

$9,940 U