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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

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: During March, the following activity was recorded by the company: The company produced 3,000 units during the month. A total of 8,000 pounds of material were purchased at a cost of $23,000. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse. During March, 1,600 direct labor-hours were worked at a rate of $6.50 per hour. Variable manufacturing overhead costs during March totaled $1,800. The direct materials purchases variance is computed when the materials are purchased. 3. The labor rate variance for March is: A. $480 U B. $800 U C. $480 F D. $800 F 4. The labor efficiency variance for March is: A. $5,040 U B. $1,200 U C. $1,200 F D. $5,040 F 5. The variable overhead rate variance for March is: A. $200 U B. $600 U C. $600 F D. $200 F

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