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: Direct materials Direct labor Variable manufacturing overhead Standard Quantity 7.30 pounds 0.40 hours 0.40 hours Standard Price or Rate $ 1.10 per pound $48.50 per hour $10.00 per hour Standard Cost $ 8.03 $19.40 $ 4.00 During March, the following activity was recorded by the company: The company produced 3,900 units during the month. A total of 20,900 pounds of material were purchased at a cost of $15,080. There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,120 pounds of material remained in the warehouse. . During March, 1,240 direct labor-hours were worked at a rate of $45.50 per hour. Variable manufacturing overhead costs during March totaled $15,561. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice $3,161 U $3,161 F $3,697 U $3,697 0 $3,697 F Highfill Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product D80D specifies 6.8 direct labor-hours per unit of D80D. The standard variable overhead rate is $7.10 per direct labor-hour. During the most recent month, 1,200 units of product D80D were made and 8,300 direct labor-hours were worked. The actual variable overhead incurred was $62,710. Required: a. What was the variable overhead rate variance for the month? b. What was the variable overhead efficiency variance for the month? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) a. Variable overhead rate variance Variable overhead efficiency variance Fortes Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 7.1 ounces 0.6 hours 0.6 hours Standard Price or Rate $ 7.30 per ounce $26.70 per hour $ 5.60 per hour The company has reported the following actual results for the product for April: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor cost Actual variable overhead cost 8,550 units 61,710 ounces $ 341,700 60,735 ounces 3,850 hours $ 107,860 $ 20,701 Required: a. Compute the materials price variance for April. b. Compute the materials quantity variance for April. c. Compute the labor rate variance for April. d. Compute the labor efficiency variance for April. e. Compute the variable overhead rate variance for April. f. Compute the variable overhead efficiency variance for April. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) a. Materials price variance b. Materials quantity variance C. Labor rate variance d. Labor efficiency variance e. Variable overhead rate variance f. Variable overhead efficiency variance
