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 Standard Quantity 7.1 pounds 0.5 hours: Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company: 0.5 hours Standard Price or Rate $.90 per pound $ 46.50 per hour $9.80 per hour Standard Cost $6.39 $ 23.25 $ 4.90 . The company produced 3,700 units during the month. • A total of 20,700 pounds of material were purchased at a cost of $14,880. . There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,920 pounds of material remained in the warehouse. . During March, 1,220 direct labor-hours were worked at a rate of $43.50 per hour. • Variable manufacturing overhead costs during March totaled $15,361. The direct materials purchases variance is computed when the materials are purchased. The variable overhead spending variance for March is:

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 Standard Quantity 7.1 pounds 0.5 hours: Direct materials Direct labor Variable manufacturing overhead During March, the following activity was recorded by the company: 0.5 hours Standard Price or Rate $.90 per pound $ 46.50 per hour $9.80 per hour Standard Cost $6.39 $ 23.25 $ 4.90 . The company produced 3,700 units during the month. • A total of 20,700 pounds of material were purchased at a cost of $14,880. . There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,920 pounds of material remained in the warehouse. . During March, 1,220 direct labor-hours were worked at a rate of $43.50 per hour. • Variable manufacturing overhead costs during March totaled $15,361. The direct materials purchases variance is computed when the materials are purchased. The variable overhead spending variance for March is:

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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. Thecompany uses a standard cost system and has established the following standards 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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