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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 uses a standard
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 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
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