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	$4.75 per pound	$9.50
Direct labor	0.5 hours	$13 per hour	$6.5
Variable manufacturing overhead	0.5 hours	$3.00 per hour	$1.50

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

The company produced 4,400 units during the month.

A total of 12,300 pounds of material were purchased at a cost of $34,440.

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

2,460 pounds of material remained in the warehouse.

During March, 2,400 direct labor-hours were worked at a rate of $13.50 per hour.

Variable manufacturing overhead costs during March totaled $3,800.

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

The materials quantity variance for March is:

$4,940 F

$18,640 F

$18,640 U

$4,940 U