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	2.0 pounds	$3.25 per pound	$6.50
Direct labor	0.5 hours	$7 per hour	$3.5
Variable manufacturing overhead	0.5 hours	$1.50 per hour	$.75

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

The company produced 3,200 units during the month.

A total of 9,900 pounds of material were purchased at a cost of $27,720.

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

1,980 pounds of material remained in the warehouse.

During March, 1,800 direct labor-hours were worked at a rate of $7.50 per hour.

Variable manufacturing overhead costs during March totaled $1,550.

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

The materials price variance for March is:

$4,455 U

$14,320 F

$14,320 U

$4,455 F