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	$	3.50	per pound	$	8.75
Direct labor		0.6	hours	$	8.00	per hour	$	4.80
Variable manufacturing overhead		0.6	hours	$	1.75	per hour	$	1.05

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

• The company produced 3,400 units during the month.
• A total of 12,000 pounds of material were purchased at a cost of $33,600.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,400 pounds of material remained in the warehouse.
• During March, 2,240 direct labor-hours were worked at a rate of $8.50 per hour.
• Variable manufacturing overhead costs during March totaled $2,552.

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

The materials quantity variance for March is:

Multiple Choice

• $3,850 F

• $18,100 F

• $18,100 U

• $3,850 U