10 Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: (8 00:29:50 Direct materials Direct labor Variable manufacturing overhead Standard Quantity 2.5 pounds 0.5 hours 0.5 hours Standard Price or Standard Rate Cost $ 7.25 per pound $18.12 $23.00 per hour $11.50 $ 5.50 per hour $ 2.75 During March, the following activity was recorded by the company: The company produced 6,400 units during the month. A total of 20,200 pounds of material were purchased at a cost of $56,560. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,040 pounds of material remained in the warehouse . During March, 3,400 direct labor-hours were worked at a rate of $23.50 per hour. Variable manufacturing overhead costs during March totaled $9,550. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: Multiple Choice $1,160 E $1,1600 $32,160 U $32,160 E