Puvo, Incorporated, 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 7.1 pounds 0.5 hours . 0.5 hours During March, the following activity was recorded by the company: Standard Price or Rate $.90 per pound $ 46.50 per hour $9.80 per hour Standard Cost . The company produced 3,700 units during the month. . A total of 20,700 pounds of material were purchased at a cost of $14,880. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,920 pounds of material remained in the warehouse. During March, 1,220 direct labor-hours were worked at a rate of $43.50 per hour. Variable manufacturing overhead costs during March totaled $15,361. The direct materials purchases variance is computed when the materials are purchased. The variable overhead spending variance for March is: $6.39 $ 23.25 $ 4.90

Puvo, Incorporated, 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 foliowing standards for one unit of product: During March, the following octivity was recorded by the company: - The company produced 3,700 units during the month. - A total of 20,700 pounds of material were purchased at a cost of $14,880. - There was no beginning imventory of materials on hand to start the month at the end of the month, 4,920 pounds of material remained in the warehouse. - During March, 1,220 direct labor-hours were worked at a tate of \$43.50 per hour, - Variable manufacturing overhead costs during March totaled $15,361. The direct materials purchases variance is computed when the materials are purchased. The variable overhead spending variance for March is