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 During March, the following activity was recorded by the company: The variable overhead rate variance for March is: . The company produced 4,400 units during the month. • A total of 21,400 pounds of material were purchased at a cost of $15,580. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,620 pounds of material remained in the warehouse. . During March, 1,290 direct labor-hours were worked at a rate of $50.50 per hour. • Variable manufacturing overhead costs during March totaled $16,061. The direct materials purchases variance is computed when the materials are purchased. Multiple Choice O $3,161 U O $2,516 F O Standard Quantity 7.80 pounds 0.40 hours 0.40 hours $3,161 F Standard Price or Rate $ 1.10 per pound $53.50 per hour. $10.50 per hour. $2,516 U Standard Cost $8.58 $ 21.40 $ 4.20

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 During March, the following activity was recorded by the company: The variable overhead rate variance for March is: . The company produced 4,400 units during the month. • A total of 21,400 pounds of material were purchased at a cost of $15,580. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,620 pounds of material remained in the warehouse. . During March, 1,290 direct labor-hours were worked at a rate of $50.50 per hour. • Variable manufacturing overhead costs during March totaled $16,061. The direct materials purchases variance is computed when the materials are purchased. Multiple Choice O $3,161 U O $2,516 F O Standard Quantity 7.80 pounds 0.40 hours 0.40 hours $3,161 F Standard Price or Rate $ 1.10 per pound $53.50 per hour. $10.50 per hour. $2,516 U Standard Cost $8.58 $ 21.40 $ 4.20

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Description: 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 followingstandards for one unit of pr

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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