The Litton Company has established standards as follows: Direct material 3 kg @ $4/kg = $12 per unit Direct labour 2 hrs. @ $8/hr. = $16 per unit Variable manuf. overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company records the materials price variance when materials are purchased.

Units produced	600
Direct material used	2,000	kg
Direct material purchased (3,000 kg)	$11,400
Direct labour cost (1,100 hrs.)	$9,240
Variable manuf. overhead cost incurred	$5,720

The company applies variable manufacturing overhead to products on the basis of direct labour hours.

The materials quantity variance is:

$760U.

$800U.

$4,000F.

$760F.