Smokey and the Bandit, Inc uses a standard cost system. For August, the company produced 4,200 units. The following information is available for the month. (round answers to the nearest dollar).

Standards:			-
Material	4.0 pounds per unit @ $5.25 per pound
Labor	6.0 hours per unit @ $10.00 per hour
-	-
Actual:			-
Units Produced		4,200
Material purchased		17,500 pounds @ $5.10
25,500 direct labor hours @ $9.85 per hour			-

What is the material price variance (based on quantity purchased)?

1. $2,625 U

2. $2,505 F

3. $2,625 F

4. $2,505 F