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		2.5	pounds	$	7.25	per pound	$	18.12
Direct labor		0.5	hours	$	23.00	per hour	$	11.50
Variable manufacturing overhead		0.5	hours	$	5.50	per hour	$	2.75

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

• The company produced 6,400 units during the month.
• A total of 20,200 pounds of material were purchased at a cost of $56,560.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,040 pounds of material remained in the warehouse.
• During March, 3,400 direct labor-hours were worked at a rate of $23.50 per hour.
• Variable manufacturing overhead costs during March totaled $9,550.

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

The materials quantity variance for March is:

Multiple choice

• $1,160 F

• $32,160 F

• $32,160 U

• $1,160 U