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	2.5	pounds	$ 6.50	per pound	$ 16.25
Direct labor	0.6	hours	$ 20.00	per hour	$ 12.00
Variable manufacturing overhead	0.6	hours	$ 4.75	per hour	$ 2.85

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

• The company produced 5,800 units during the month.
• A total of 18,500 pounds of material were purchased at a cost of $51,800.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,700 pounds of material remained in the warehouse.
• During March, 3,680 direct labor-hours were worked at a rate of $20.50 per hour.
• Variable manufacturing overhead costs during March totaled $10,688.

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

The materials quantity variance for March is:

Multiple Choice

• $1,950 F

• $1,950 U

• $29,300 U

• $29,300 F