Puvo, Incorporated, 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	1.5	pounds	$ 3.75	per pound	$ 5.62
Direct labor	0.5	hours	$ 9.00	per hour	$ 4.50
Variable manufacturing overhead	0.5	hours	$ 2.00	per hour	$ 1.00

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

The company produced 3,600 units during the month.A total of 8,900 pounds of material were purchased at a cost of $24,920. There was no beginning inventory of materials on hand to start the month; at the end of the month, 1,780 pounds of material remained in the warehouse. During March, 2,000 direct labor-hours were worked at a rate of $9.50 per hour. Variable manufacturing overhead costs during March totaled $2,200.The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

$6,450 F

$6,450 U

$12,520 F

$12,520 U