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 $5\mathrm{.}8$ pounds $ $0\mathrm{.}60$ per pound $ $3\mathrm{.}48$

Direct labor $0\mathrm{.}5$ hours $ $33\mathrm{.}50$ per hour $ $16\mathrm{.}75$

Variable manufacturing overhead $0\mathrm{.}5$ hours $ $8\mathrm{.}50$ per hour $ $4\mathrm{.}25$

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\mathrm{.}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 materials quantity variance for March is:

Multiple Choice

$$1,116$ F

$$1,302$ F

$$1,302$ U

$$1,116$ U