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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
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: During March, the following activity was recorded by the company: - The company produced 5,000 units during the month. - A total of 13,500 pounds of material were purchased at a cost of $37,800. - There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,700 pounds of material remained in the warehouse. - During March, 3,200 direct labor-hours were worked at a rate of $16.50 per hour. - Variable manufacturing overhead costs during March totaled $7,400. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is
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