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 2.5 pounds 0.5 hours 0.5 hours Standard Price or Standard Rate Cost $ 4.25 per pound $10.62 $11.00 per hour $ 5.50 $ 2.50 per hour $ 1.25 During March, the following activity was recorded by the company: The company produced 4.000 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, 2.200 direct labor-hours were worked at a rate of $11.50 per hour. Variable manufacturing overhead costs during March totaled $2.950. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: Multiple Choice $3.400 F o $20,800 F $20,800 U $3.400 V