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Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct lobor hours. The company uses a
Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct lobor hours. The company uses a standard cost system and has established the following standards for one unit of product Standard Quantity Direct materials 2.0 pounds Direct labor 0.6 hours Variable manufacturing overhead 0.6 hours During March, the following activity was recorded by the company Standard Price or Rate $ 4.00 per pound $ 10.00 per hour $ 2.25 per hour Standard Coat $ 8.00 $ 6.00 $ 1.35 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 months 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. Varioble 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
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