Miguez Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	2.3	liters	$ 7.00	per liter	$ 16.10
Direct labor	0.7	hours	$ 22.00	per hour	$ 15.40
Variable overhead	0.7	hours	$ 2.00	per hour	$ 1.40

The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 price variance for September is:

$1,150 U

$1,150 F

$1,160 F

$1,160 U