Sad Puvo. Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis ofta uses a standard cost system and has established the following standards for one unit of product 2 Standard Quantity Direct materials 5.8 pounds Direct labor 0.5 hours Variable manufacturing overhead 0.5 hours During March, the following activity was recorded by the company, Standard Price or Rate $ 0.60 per pound $ 33.5 per hour $ 8.50 per hour Standard $ 3.48 $16.75 $ 4.25 . The company produced 2,400 units during the month. A total of 19,400 pounds of material were purchased at a cost of $13,580. There was no beginning inventory of materials on hand to start the month at the end of the month. 3,620 pounds of mate During March 1.090 direct labor hours were worked at a rate of $30.50 per hour Variable manufacturing overhead costs during March totaled $14,061, The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for March is: Saved The labor efficiency variance for March is: Multiple Choice $3,040 U 0 $3,685 U O $3,685 F $3,040 F 19 of 27 Next