Q14-Q18 are based on this case: Martin Co. gathered the following actual results for the current month:

Actual Units produced 3,000

Direct materials purchased and used (6,100 lbs.) $27,450

Direct labor cost (4,300 hours actual) $30,100

Overhead costs incurred, in total.$40,650 [= $11,750 Variable and $28,900 Fixed overhead incurred.]

Machine hours of 310 hours actual used.

The Static original budgeted production was 4,000 units. The Input standards were:

Std Quantity x Std Price per input =Std Cost per Output U

Direct materials 2 lbs./Output unit x $4.25/lb.

Direct labor 1.5 hrs./Output unit x $7.50/hr.

Variable manufacturing overhead 0.1 machine hr x $40 per hr = $4 per unit

Fixed mfg. overhead [Budget $28,000] 0.1 machine hr x $70 per hr = $7 per unit

Q14. What is the direct materials quantity variance? _____

A. $1525U B. 1500F C. 425U D. 1950U E. None of these.