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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 Quantity Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound Direct labor 0.50 hours $34.50 per hour $ 4.13 $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 During March, the following activity was recorded by the company: -The company produced 2.500 units during the month. -A total of 19.500 pounds of material were purchased at a cost of $13.680. -There was no beginning inventory of materials on hand to start the month: at the end of the month. 3.720 pounds of material remained in the warehouse. -During March, 1.100 direct labor-hours were worked at a rate of $31.50 per hour. Variable manufacturing overhead costs during march totaled $14.161. -The direct materials purchases variance is computed when the materials are purchased. -The variable overhead rate variance for march is: a. $4.7017 b. $5.046 u c. $5.0467 d. $4,701 u

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 Quantity Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound Direct labor 0.50 hours $34.50 per hour $ 4.13 $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 During March, the following activity was recorded by the company: -The company produced 2.500 units during the month. -A total of 19.500 pounds of material were purchased at a cost of $13.680. -There was no beginning inventory of materials on hand to start the month: at the end of the month. 3.720 pounds of material remained in the warehouse. -During March, 1.100 direct labor-hours were worked at a rate of $31.50 per hour. Variable manufacturing overhead costs during march totaled $14.161. -The direct materials purchases variance is computed when the materials are purchased. -The variable overhead rate variance for march is: a. $4.7017 b. $5.046 u c. $5.0467 d. $4,701 u

FINANCIAL ACCOUNTING
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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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 Quantity Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound Direct labor 0.50 hours $34.50 per hour $ 4.13 $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 During March, the following activity was recorded by the company: -The company produced 2.500 units during the month. -A total of 19.500 pounds of material were purchased at a cost of $13.680. -There was no beginning inventory of materials on hand to start the month: at the end of the month. 3.720 pounds of material remained in the warehouse. -During March, 1.100 direct labor-hours were worked at a rate of $31.50 per hour. Variable manufacturing overhead costs during march totaled $14.161. -The direct materials purchases variance is computed when the materials are purchased. -The variable overhead rate variance for march is: a. $4.7017 b. $5.046 u c. $5.0467 d. $4,701 u
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 Quantity Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound Direct labor 0.50 hours $34.50 per hour $ 4.13 $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 During March, the following activity was recorded by the company: -The company produced 2.500 units during the month. -A total of 19.500 pounds of material were purchased at a cost of $13.680. -There was no beginning inventory of materials on hand to start the month: at the end of the month. 3.720 pounds of material remained in the warehouse. -During March, 1.100 direct labor-hours were worked at a rate of $31.50 per hour. Variable manufacturing overhead costs during march totaled $14.161. -The direct materials purchases variance is computed when the materials are purchased. -The variable overhead rate variance for march is: a. $4.7017 b. $5.046 u c. $5.0467 d. $4,701 u
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