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:

	Standard Quantity			Standard Price or Rate			Standard Cost
Direct materials		1.5	pounds	$	7.50	per pound	$	11.25
Direct labor		0.6	hours	$	24.00	per hour	$	14.40
Variable manufacturing overhead		0.6	hours	$	5.75	per hour	$	3.45

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

• The company produced 6,600 units during the month.
• A total of 13,400 pounds of material were purchased at a cost of $37,520.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,680 pounds of material remained in the warehouse.
• During March, 4,160 direct labor-hours were worked at a rate of $24.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,552.

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

The materials quantity variance for March is

Multiple Choice:

• $6,150 F

• $20,620 F

• $20,620 U

• $6,150 U