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:

	Standard Quantity		Standard Price or Rate		Standard Cost
Direct materials	2.0	pounds	$ 4.00	per pound	$ 8.00
Direct labor	0.6	hours	$ 10.00	per hour	$ 6.00
Variable manufacturing overhead	0.6	hours	$ 2.25	per hour	$ 1.35

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

• The company produced 3,800 units during the month.
• A total of 11,100 pounds of material were purchased at a cost of $31,080.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,220 pounds of material remained in the warehouse.
• During March, 2,480 direct labor-hours were worked at a rate of $10.50 per hour.
• Variable manufacturing overhead costs during March totaled $3,548.

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

The materials quantity variance for March is:

Multiple Choice

• $5,120 U

• $16,480 F

• $5,120 F

• $16,480 U

Mullins Corporation uses the first-in, first-out method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work in process inventory:
Units in beginning work in process inventory	1,350
Materials costs	$ 12,800
Conversion costs	$ 22,850
Percent complete with respect to materials	75%
Percent complete with respect to conversion	65%
Units started into production during the month	9,900
Units transferred to the next department during the month	9,100
Materials costs added during the month	$ 172,300
Conversion costs added during the month	$ 361,500
Ending work in process inventory:
Units in ending work in process inventory	2,150
Percent complete with respect to materials	65%
Percent complete with respect to conversion	50%

The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round equivalent units to the nearest whole number and round all other intermediate calculations to 3 decimal places.)

Multiple Choice

• $569,223

• $530,775

• $502,262

• $497,075

A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity	1,600	MHs
Overhead costs at the denominator activity level:
Variable overhead cost	$ 14,550
Fixed overhead cost	$ 19,370

The following data pertain to operations for the most recent period:

Actual hours	1,500	MHs
Standard hours allowed for the actual output	1,640	MHs
Actual total variable manufacturing overhead cost	$ 13,440
Actual total fixed manufacturing overhead cost	$ 20,560

The predetermined overhead rate is closest to:

Multiple Choice

• $21.25 per hour

• $21.20 per hour

• $22.67 per hour

• $22.61 per hour