MC Qu. 117 Pardoe, Inc., manufactures a single product...

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 Quantity	Standard Price or Rate	Standard Cost
Direct materials	1.5 pounds	$3.75 per pound	$5.625
Direct labor	0.5 hours	$9 per hour	$4.5
Variable manufacturing overhead	0.5 hours	$2.00 per hour	$1.00

During March, the following activity was recorded by the company:

The company produced 3,600 units during the month.

A total of 8,900 pounds of material were purchased at a cost of $24,920.

There was no beginning inventory of materials on hand to start the month; at the end of the month,

1,780 pounds of material remained in the warehouse.

During March, 2,000 direct labor-hours were worked at a rate of $9.50 per hour.

Variable manufacturing overhead costs during March totaled $2,200.

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

$12,520 F

$12,520 U

$6,450 U

$6,450 F

The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is: