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	2.0	pounds	$ 7.00	per pound	$ 14.00
Direct labor	0.6	hours	$ 22.00	per hour	$ 13.20
Variable manufacturing overhead	0.6	hours	$ 5.25	per hour	$ 3.15

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

• The company produced 6,200 units during the month.
• A total of 15,900 pounds of material were purchased at a cost of $44,520.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,180 pounds of material remained in the warehouse.
• During March, 3,920 direct labor-hours were worked at a rate of $22.50 per hour.
• Variable manufacturing overhead costs during March totaled $12,548.

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

The materials quantity variance for March is:

Multiple Choice

• $2,240 F

• $25,120 F

• $25,120 U

• $2,240 U