The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: Multiple Cholce $3,400 U $20.800 Puvo, Inc., 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 Standerd Cost Standerd Price Standard Quantity 2.5 pounds 3.5 hours 0.5 hours or Rate Direct materials Direct labor Variable manufacturing overhead 4.25 per pound 18.62 $11.00 per hour 5.58 s 2.50 per hour1.25 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, 2200 direct labor-hours were worked at e rate of $11.50 per hour. Varisble manufacturing overhead costs during March totaled $2950. . The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is