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Oman, 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
Oman, 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 Cost Direct materials Direct labor Standard Quantity 5.8 pounds 0.5 hours 0.5 hours Standard Price or te $ 0.60 per pound $33.50 per hour $ 8.50 per hour Variable sanufacturing overhead $ 3.48 $16.75 5.4.25 During March, the following activity was recorded by the company: . + - The company produced 2.400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580 (or $0.70 cents per pound! There was no beginning inventory of materials on hand to start the month at the end of the month, 3,620 pounds of material remained in the warehouse. During March, 1.090 direct labor-hours were worked at a rate of $30.50 per hour. Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for March is
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