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 $ 5.50 per pound $ 11.00 Direct labor 0.6 hours $ 16.00 per hour $ 9.60 Variable manufacturing overhead 0.6 hours $ 3.75 per hour $ 2.25

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

The company produced 5,000 units during the month. A total of 13,500 pounds of material were purchased at a cost of $37,800. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,700 pounds of material remained in the warehouse. During March, 3,200 direct labor-hours were worked at a rate of $16.50 per hour. Variable manufacturing overhead costs during March totaled $7,400.

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

The materials quantity variance for March is: