Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Puvo, 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

image text in transcribed

Puvo, 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 Price Standard Cost $4.00 per pound $8.00 $10.00 per hour 6.00 $2.25 per hour 1.35 Standard Quantity 2.0 pounds 0.6 hours 0.6 hours or Rate Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company The company produced 3,800 units during the month A total of 11,100 pounds of material were purchased at a cost of $31,080 There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,220 pounds of material remained in the warehouse During March, 2,480 direct labor-hours were worked at a rate of $10.50 per hour Variable manufacturing overhead costs during March totaled $3,548. The direct materials purchases variance is computed when the materials are purchased The materials quantity variance for March is Multiple Choice $5,120 F $16,480 F $16,480 U $5,120 U

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

DCAA Contract Audit Manual Volume 1

Authors: Defense Contract Audit Agency

1st Edition

B08HTL19V5, 979-8684992995

More Books

Students also viewed these Accounting questions

Question

2. My supervisor ordinarily shows a kind concern for my comfort.

Answered: 1 week ago

Question

b. Where did they come from?

Answered: 1 week ago