Puvo, 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: Direct materials Direct labor Variable manufacturing overhead Standard Quantity 1.5 pounds 0.6 hours 0.6 hours Standard Price or Rate $ 6.00 per pound $18.00 per hour $ 4.25 per hour Standard Cost $ 9.00 $10.80 $ 2.55 During March, the following activity was recorded by the company: The company produced 5,400 units during the month. A total of 11,600 pounds of material were purchased at a cost of $32,480. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,320 pounds of material remained in the warehouse. During March, 3,440 direct labor-hours were worked at a rate of $18.50 per hour. Variable manufacturing overhead costs during March totaled $8,972. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: Multiple Choice $17,380 V $7,080 F $17,380 F $7,080 U