Ortman Corporation makes a product with the following standard costs:

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 May is:

$1,264 F

$1,400 F

$1,264 U

$1,400 U

	Standard Quantity or Hours	Standard Price or Rate
Direct materials	7.9 liters	$8.00 per liter
Direct labor	0.7 hours	$17.00 per hour
Variable overhead	0.7 hours	$1.00 per hour

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

Actual output	1,600	units
Raw materials used in production	12,490	liters
Actual direct labor-hours	1,090	hours
Purchases of raw materials	14,000	liters
Actual price of raw materials purchased	$8.10	per liter
Actual direct labor rate	$16.10	per hour
Actual variable overhead rate	$0.90	per hour