21 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 thefollowing standards for one unit of product:Standard PriceStandardor Rate$ 7.00 per pound$22.00 per hour$ 5.25 per hourStandard QuantityCost$ 14.00$ 13.20Direct materials2.0 poundsDirect labor0.6 hoursVariable manufacturing overhead0.6 hours243.15During March, the following activity was recorded by the company:• The company produced 6,200 units during the month.. A total of 15,900 pounds of material were purchased at a cost of $44,520.• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,180 pounds of material remained in the warehouse.• During March, 3,920 direct labor-hours were worked at a rate of $22.50 per hou.• Variable manufacturing overhead costs during March totaled $12,548.The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for March is:Multiple Choice$2.240 F$25,120 F During March, the following activity was recorded by the company:• The company produced 6,200 units during the month.· A total of 15,900 pounds of material were purchased at a cost of $44,520.• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,180 pounds of material remained in the warehouse.• During March, 3,920 direct labor-hours were worked at a rate of $22.50 per hour.• Variable manufacturing overhead costs during March totaled $12,548.The direct materials purchases variance is computed when the materials are purchased.The materials quantity variance for March is:Multiple Choice$2,240 F$25,120 FS25,120 U$2,240 U

The formula used to calculate the material quantity variance is: Material Quantity Variance=Standard…

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 Price Standard Standard Quantity 2.0 pounds or Rate $ 7.00 per pound Cost $ 14.00 $ 13.20 Direct materials Direct labor 0.6 hours $22.00 per hour $ 5.25 per hour Variable manufacturing overhead 0.6 hours 24 3.15 During March, the following activity was recorded by the company: • The company produced 6,200 units during the month. · A total of 15,900 pounds of material were purchased at a cost of $44,520. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,180 pounds of material remained in the warehouse. • During March, 3,920 direct labor-hours were worked at a rate of $22.50 per hour. • Variable manufacturing overhead costs during March totaled $12,548. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for March is: