The Kinks Company makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	2.0 ounces	$5.00 per ounce	$10.00
Direct labor	0.7 hours	$11.00 per hour	$7.70
Variable overhead	0.7 hours	$3.50 per hour	$2.45

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

Originally budgeted output	5,600	units
Actual output	5,400	units
Raw materials used in production	8,400	ounces
Actual direct labor-hours	3,980	hours
Purchases of raw materials	10,000	ounces
Actual price of raw materials	4.75	per ounce
Actual direct labor rate	11.70	per hour
Actual variable overhead rate	3.95	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 price variance for December is:

$14,100 U

$2,500 F

$2,500 U

$14,100 F