TB MC Qu. 10-144 (Algo) Doogan Corporation makes a product ... Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 1.5 hours $ 11.00 per hour Variable overhead 1.5 hours $ 5.00 per hour The company produced 4,900 units in January using 10,330 grams of direct material and 2,310 direct labor-hours. During the month, the company purchased 10,900 grams of the direct material at $7.25 per gram. The actual direct labor rate was $11.80 per hour and the actual variable overhead rate was $4.80 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 January is: Multiple Choice $3,710 F $3,843 U $3,843 F $3,710 U