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Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor hours. The company usos a
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor hours. The company usos a standard cost system and has established the following standards for one unit of product: Standard Price Standard Standard Quantity or Rate Cost Direct materials 2.0 pounds $ 3.25 per pound $ 6.50 Direct labor 0.5 hours $7.00 per hour $ 3.50 Variable manufacturing overhead @.5 hours $1.50 per hour 1.75 $ During March, the following activity was recorded by the company. The company produced 3,200 units during the month A total of 9.900 pounds of material were purchased at a cost of $27720 There was no beginning inventory of materials on hand to start the month at the end of the month, 1980 pounds of material remained in the warehouse . During March 1800 direct labor houts were worked at a rate of $750 per hout Variable manufacturing overhead costs during March totaled $1.550 The direct materials purchases variance is computed when the materials are purchased The materials quantity variance for March is
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