Pardoe, 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: Standard Quantity Standard Price or Rate Standard Cost Direct materials 2.5 pounds $7.25 per pound $18.125 Direct labor 0.5 hours $23 per hour $11.5 Variable manufacturing overhead 0.5 hours $5.50 per hour $2.75 During March, the following activity was recorded by the company: The company produced 6,400 units during the month. A total of 20,200 pounds of material were purchased at a cost of $56,560. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,040 pounds of material remained in the warehouse. During March, 3,400 direct labor-hours were worked at a rate of $23.50 per hour. Variable manufacturing overhead costs during March totaled $9,550. The direct materials purchases variance is computed when the materials are purchased.

The materials quantity variance for March is:

$1,160 F

$1,160 U

$32,160 U

$32,160 F