TB MC Qu. 9-336 Puvo, Inc., manufactures a single product in which ... 50 Puvo, Inc., 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: 2 points 8 01:28:14 Direct materials Direct labor Variable manufacturing overhead Standard Quantity 6.90 pounds 0.60 hours 0.60 hours Standard Price or Rate $ 0.70 per pound $44.50 per hour $ 9.60 per hour Standard Cost $ 4.83 $ 26.70 $ 5.76 eBook During March, the following activity was recorded by the company: References The company produced 3,500 units during the month. A total of 20,500 pounds of material were purchased at a cost of $14,680. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,720 pounds of material remained in the warehouse. During March, 1,200 direct labor-hours were worked at a rate of $41.50 per hour. Variable manufacturing overhead costs during March totaled $15,161. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice O $3,641 F O $4,355 U O $4,355 F O $3,641 U