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		2.0	pounds	$	4.75	per pound	$	9.50
Direct labor		0.5	hours	$	13.00	per hour	$	6.50
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:

Multiple Choice

• $4,940 F

• $18,640 F

• $18,640 U

• $4,940 U