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	$	7.75	per pound	$	15.50
Direct labor		0.5	hours	$	25.00	per hour	$	12.50
Variable manufacturing overhead		0.5	hours	$	6.00	per hour	$	3.00

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

• The company produced 6,800 units during the month.
• A total of 17,100 pounds of material were purchased at a cost of $47,880.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,420 pounds of material remained in the warehouse.
• During March, 3,600 direct labor-hours were worked at a rate of $25.50 per hour.
• Variable manufacturing overhead costs during March totaled $11,000.

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

The materials quantity variance for March is:

Multiple Choice

• $620 F

• $27,280 U

• $27,280 F

• $620 U