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 price variance for March is:

$89,890 U

$32,160 F

$32,160 U

$89,890 F