20 value 3.00 points Pardoe, 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 Standard Price or Standard Cost Standard Quantity Rate $4.50 per pound $675 Direct materials 1.5 pounds $12 per hour $72 Direct labor 0.6 hours $1.55 0.6 hours $2.75 per hour Variable manufacturing overhead During March, the following activity was recorded by the company: The company produced 4,200 units during the month. A total of 9,800 pounds of material were purchased at a cost of $27,440. There was no beginning inventory of materials on hand to start the month; at the end of the month 1,960 pounds of material remained in the warehouse During March, 2,720 direct labor-hours were worked at a rate of $12.50 per hour. Variable manufacturing overhead costs during March totaled $4,688. The direct materials purchases variance is computed when the materials are purchased The materials quantity variance for March is: O $6,930 F O $14.140 F O $14.140 U O $6.930 U