Pardoe, Inc., manufactures a single product. The company uses a standard cost system and has established the following standards for one unit of product:

	Standard Quantity of inputs	Standard Price or Rate per input	Standard Cost per unit
Direct materials	1.5 pounds	$3.20 per pound	$4.80
Direct labor	0.7 hours	$5.00 per hour	$3.50

Pardoe's budget for March used estimated production and sales of 2,900 units.

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

• The company produced 3,000 units during the month.
• A total of 5,000 pounds of material were purchased and used. The cost was $18,000.
• During March, 2000 direct labor hours were worked at a rate of $5.50 per hour.

For all of these Pardoe questions, pick the closest answer numerically and then choose based on the U or F.

What would be the volume variance for materials for March?

	a.	$480 F
	b.	$320 F
	c.	$320 U
	d.	$960 F
	e.	$960 U
	f.	$480 U