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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:

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:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 or Rate $ 7.00 per pound $22.00 per hour $ 5.25 per hour Standard Quantity Cost $ 14.00 $ 13.20 Direct materials 2.0 pounds Direct labor 0.6 hours 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 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
Transcribed Image Text: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 or Rate $ 7.00 per pound $22.00 per hour $ 5.25 per hour Standard Quantity Cost $ 14.00 $ 13.20 Direct materials 2.0 pounds Direct labor 0.6 hours 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 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 F S25,120 U $2,240 U
Transcribed Image Text: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 F S25,120 U $2,240 U
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