TB MC Qu. 10-160 (Algo) Puvo, Incorporated, manufactures a single product in which... 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 7.4 pounds 0.4 hours Standard Price or Rate Standard Cost $1.20 per pound 30.08 0.4 hours $49.50 per bour $ 10.10 per bour $19.80 4.04 During March, the following activity was recorded by the company The company produced 4,000 units during the month A total of 21,000 pounds of material were purchased at a cost of $15,180 There was no beginning inventory of materials on hand to start the month at the end of the month, 5,220 pounds of material remained in the warehouse During March, 1250 direct labor-hours were worked at a rate of $40.50 per hour. Variable manufacturing overhead costs during March totaled $15,661 The direct materials purchases variance is computed when the materials are purchased The variable overhead rate variance for March is Mungin Choice $106 The company produced 4,000 units during the month. A total of 21,000 pounds of material were purchased at a cost of $15,180. There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,220 pounds of material remained in the warehouse. During March, 1,250 direct labor-hours were worked at a rate of $46.50 per hour Variable manufacturing overhead costs during March totaled $15,661 The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice $3,036 F $3.593 U $3,036 U $3,593 F completion