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 5.8 pounds 0.5 hours 0.5 hours During March, the following activity was recorded by the company The company produced 2,400 units during the month. . A total of 19,400 pounds of material were purchased at a cost of $13,580 Standard Price or Rate $0.60 per pound $ 33.50 per hour Standard Cost $ 3.48 $16.75 $ 8.50 per hour $ 4.25 . 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. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour • Variable manufacturing overhead costs during March totaled $14,061 The direct materials purchases variance is computed when the materials are purchased. The materials price variance for March is: Multiple Choice
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 5.8 pounds 0.5 hours 0.5 hours During March, the following activity was recorded by the company The company produced 2,400 units during the month. . A total of 19,400 pounds of material were purchased at a cost of $13,580 Standard Price or Rate $0.60 per pound $ 33.50 per hour Standard Cost $ 3.48 $16.75 $ 8.50 per hour $ 4.25 . 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. During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour • Variable manufacturing overhead costs during March totaled $14,061 The direct materials purchases variance is computed when the materials are purchased. The materials price variance for March is: Multiple Choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
5.8 pounds
0.5 hours
0.5 hours
During March, the following activity was recorded by the company
The company produced 2,400 units during the month.
. A total of 19,400 pounds of material were purchased at a cost of $13,580
Standard Price or Rate
$0.60 per pound
$ 33.50 per hour
Standard Cost
$ 3.48
$16.75
$ 8.50 per hour
$ 4.25
. 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.
During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour
• Variable manufacturing overhead costs during March totaled $14,061
The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for March is:
Multiple Choice
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