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	2.0 pounds	$7.00 per pound	$14.00
Direct labor	0.6 hours	$22 per hour	$13.2
Variable manufacturing overhead	0.6 hours	$5.25 per hour	$3.15

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

The company produced 6,200 units during the month.

A total of 15,900 pounds of material were purchased at a cost of $44,520.

There was no beginning inventory of materials on hand to start the month; at the end of the month,

3,180 pounds of material remained in the warehouse.

During March, 3,920 direct labor-hours were worked at a rate of $22.50 per hour.

Variable manufacturing overhead costs during March totaled $12,548.

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

The materials price variance for March is:

$66,780 U

$25,120 F

$25,120 U

$66,780 F