MC Qu. 117 Pardoe, Inc., manufactures a single product...

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: