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PUVO, Inc., manufactures a single produce in which variable manufacturing overhead is assigned on the basis of standard direct labor hours. The company uses a

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PUVO, Inc., manufactures a single produce 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: of the month, 3,620 pounds of material remained in the warehouse. Standard Cost Standard Quantity Standard Price or Rate Direct materials 5.8 pounds $ 0.60 per pound 3.48 16.75 Direct labor 0.5 hours 33.50 per hour Variable manufacturing overhead 0.5 hours $ 8.50 per hour 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. There was no beginning inventory of materials on hand to start the month; at the end . During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour Variable manufacturing overhead costs during March totaled S14,061. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for Murchis: $3,270 F $4,120 $4,120 $3,270 u

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