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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

Accounting

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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 cost system and has established the following standards for one unit of product Direct materials Direct labor Variable manufacturing overhead Standard Quantity 2.5 pounds 0.6 hours 9.6 hours Standard Price or Rate $5.00 per pound 5:14.00 per hour 5 3.25 per hour Standard cost $ 12.50 $ 8.40 $1.95 During March the following activity was recorded by the company The company produced 4,000 units during the month A total of 15.000 pounds of material were purchased cost of $42.000 . There was no beginning inventory of materis on hand to start the month at the end of the month 3.000 pounds of material and in the warehouse During March 2.960 reciborhoors were worked at me of 80 per hour • Variable manufacturing overhead costs during March totale 55.922 The direct materials purchases arancels computed when the gaterials are corchased The materials que variance for March
• The company produced 4,600 units during the month • A total of 15,000 pounds of material were purchased at a cost of $42,000 • There was no beginning inventory of materials on hand to start the month at the end of the month, 3.000 pounds of material remained in the warehouse . During March, 2,960 direct labor-hours were worked at a rate of $14.50 per hour. • Variable manufacturing overhead costs during March totaled $5,972 The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is Multiple Choice $2.500U $22,500 U $23,600 F O $2.500F