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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

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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 cost system and has established the following standards for one unit of product Standard Quantity 2.5 pounds 0.6 hours Standard Price or Rate $3.50 per pound $8 per hour Standard Cost $8.75 Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company . The company produced 3,400 units during the month . A total of 12.000 pounds of material were purchased at a cost of $33,600. . There was no beginning inventory of materials on hand to start the month at the end of the month. 2.400 pounds of material remained in the warehouse. . During March, 2,240 direct labor-hours were worked at a rate of $8.50 per hour . Variable manufacturing overhead costs during March totaled $2,552. The direct materials purchases variance is computed when the materials are purchased The materials price variance for March is O $8,400 U O $18100 F O $18100 U O s8.400 F

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