Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows:

Direct materials: 6 kg at $8.00 per kg $ 48.00

Direct labour: 4 hours at $13 per hour 52.00

Variable overhead: 4 hours at $5 per hour 20.00

Total standard cost per unit $ 120.00

The company planned to produce and sell 20,000 units in March. However, during March the company actually produced and sold 25,500 units and incurred the following costs:

Purchased 170,000 kg of raw materials at a cost of $7.20 per kg. All of this material was used in production.

Direct labour: 73,000 hours at a rate of $14 per hour.

Total variable manufacturing overhead for the month was $427,050.

2. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)