Milar 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		1.0	hours	$	18.00	per hour
Variable overhead		1.0	hours	$	2.00	per hour

In January the company produced 4,700 units using 10,160 pounds of the direct material and 2,140 direct labor-hours. During the month, the company purchased 10,730 pounds of the direct material at a cost of $76,610. The actual direct labor cost was $38,252 and the actual variable overhead cost was $11,953.

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 January is:

Multiple Choice

$1,360 U

$1,500 U

$1,360 F

$1,500 F