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: Direct materials Direct labor Standard Quantity 5.8 pounds Standard Price or Rate $ 0.60 per pound Standard Cost 0.5 hours $ 33.50 per hour $ 3.48 $16.75 0.5 hours $8.50 per hour $4.25 Variable manufacturing overhead During March, the following activity was recorded by the company. The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061 The direct materials purchases variance is computed when the materials are purchased The labor rate variance for March is: The labor rate variance for March is: Multiple Choice $4,120 U O $3,270 U $4,120 F $3,270 F Majer Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 6.4 ounces Standard Price or Rate $ 3.00 per ounce Standard Cost Per Unit $ 19.20 0.4 hours $ 13.00 per hour $ 5.20 0.4 hours $5.00 per hour $ 2.00 The company reported the following results concerning this product in February Originally budgeted output Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials Actual direct labor rate Actual variable overhead rate 4,800 units 4,900 units 30,230 ounces 1,910 hours 32,600 ounces $ 2.90 per ounce $ 12.40 per hour $ 4.90 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials arem purchased. The materials quantity variance for February is: The materials quantity variance for February is: Multiple Choice $3,277 F $3,390 U $3,390 F $3,277 U 4