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 2.5 pounds 0.5 hours 0.5 hours Standard Price or Rate $ 4.25 per pound $ 11.00 per hour $ 2.50 per hour Standard Cost $ 10.62 $ 5.50 $ 1.25 During March, the following activity was recorded by the company: The company produced 4,000 units during the month. A total of 13,500 pounds of material were purchased at a cost of $37,800. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,700 pounds of material remained in the warehouse. During March, 2,200 direct labor-hours were worked at a rate of $11.50 per hour. Variable manufacturing overhead costs during March totaled $2,950. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: Multiple Choice $3,400 F $20.800 F O O $3,400 U O $20,800 U