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 2.5 pounds 0.6 hours Standard Price or Rate Standard Cost $ 3.50 per pound $ 8.00 per hour $ 8.75 $ 4.80 0.6 hours $ 1.75 per hour $ 1.05 Direct materials Direct labor Variable manufacturing overhead 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 $18,100 U $3,850 F $3,850 U $18,100 F