Steinberg Company had the following direct materials costs for the manufacturing of product T in March:

Actual purchase price per pound of direct materials $9.20

Standard direct materials allowed for units of product T produced4,100 pounds

Decrease in direct materials inventory300 pounds

Direct materials used in production4,300 pounds

Standard price per pound of material $8.75

Required:

1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U).

2. Prepare the appropriate journal entries for March.