Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Inputs Direct materials 8.7 liters $8.00 per liter $69.60 Direct labor 0.2 hours $25.00 per hour $5.00 Variable overhead 0.2 hours $3.00 per hour $.60 The company budgeted for production of 3,500 units in June, but actual production was 3,600 units. The company used 30,960 liters of direct material and 680 direct labor-hours to produce this output. The company purchased 32,960 liters of the direct material at $7.90 per liter. The actual direct labor rate was $25.40 per hour and the actual variable overhead rate was $2.60 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 quantity variance for June is: