The Litton Company has established standards as follows:

Direct material: 4 pounds per unit @ $6.00 per pound = $24.00 per unit

Direct labor: 2 hours per unit @ $5 per hour = $10 per unit

Variable manufacturing overhead: 2 hours per unit @ $3 per hour = $6 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	2,600	units
Direct material used	10,740	pounds
Direct material purchased (11,740) pounds	$54,004
Direct labor cost (5,100 hours)	28,560
Variable manufacturing overhead cost incurred	$15,240

The company applies variable manufacturing overhead to products on the basis of standard direct labor-hours.

The materials quantity variance is:

	$340 U
	$2,040 U
	$10,740 U
	$340 F