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	6.70	pounds	$ 0.50	per pound	$ 3.35
Direct labor	0.40	hours	$ 42.50	per hour	$ 17.00
Variable manufacturing overhead	0.40	hours	$ 9.40	per hour	$ 3.76

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

• The company produced 3,300 units during the month.
• A total of 20,300 pounds of material were purchased at a cost of $14,480.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,520 pounds of material remained in the warehouse.
• During March, 1,180 direct labor-hours were worked at a rate of $39.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,961.

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

The variable overhead rate variance for March is:

• $3,869 F

• $4,283 U

• $4,283 F

• $3,869 U