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:

During March, the following activity was recorded by the company:

• The company produced 2,600 units during the month.
• A total of 19,600 pounds of material were purchased at a cost of $13,780.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,820 pounds of material remained in the warehouse.
• During March, 1,110 direct labor-hours were worked at a rate of $32.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,261.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for March is:

Standard Price or Standard Standard Quantity 6.00 pounds Rate Cost $ .80 per pound $ 4.80 Direct materials Direct labor 0.60 hours $35.50 per hour $21.30 8.70 per hour Variable manufacturing overhead 0.60 hours 5.22 Multiple Cholce $4,604 U $5.052 F $4.604 F $5,052 U