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 Variable manufacturing overhead Standard Quantity 1.5 pounds 0.5 hours 0.5 hours 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. Standard Price or Rate Standard Cost $ 3.75 per pound $9.00 per hour $2.00 per hour $ 5.62 $4.50 $ 1.00 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, 2000 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: Multiple Choice $6,450 F $12,520 F $12,520 U $6.450 U