Question

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.
Standard Quantity Standard Price Rate or Standard Cost
Direct Materials 5.8 pounds $0.60 per pound $3.48
Direct labor 0.5 hours $33.50 per hour $16.75
Variable manufacturing overhead 0.5 hours $8.50 per hour $4.25
During March, the following activity was recorded by the company:

(1). The company produced 2400 units during the month.

(2). A total of 19.400 pounds of material were purchased at a cost of $13,580.

(3). There was no beginning Inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained In the warehouse.

(4). During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.

(5). 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:

(a)$4,120 U

(b)$3,270 F

(c)$3,270 U

(d)$4,120 F

Answer 1

Answer:

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Explanation: