follow this questions Puvo. Inc., manufactures a single product in which variable manufacturing overhead is assigned onthe basis of standard direct labor-hours. The company uses a standard cost system and hasestablished the following standards for one unit of product:StandardQuantityStandard Priceor RateStandardCostDirect materials5.90 pounds$0.70 per poundDirect labor0.50 hours$34.50 per hour$ 4.13$ 17.25Variable manufacturing 0.50 hours$8.60 per hour$ 4.30During 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 themonth. 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. $4.7017b. $5.046 uc. $5.0467d. $4,701 u

Step 1:Variance analysis is a comparison between actual and standard data so that an organisation…

Answered: Puvo. Inc., manufactures a single…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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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 6.50 poundS or Rate $1.30 per pound $40.50per hour Cost Direct materials Direct labor Variable manufacturing overhead $8.45 0.40 hours $ 16.20 $ 3.68 0.40 hours $ 9.20 per hour During March, the following activity was recorded by the company. - The company produced 3,100 units during the month. A total of 20O100 pounds of material were purchased at a cost of $14,280. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,320 pounds of material remained in the warehouse. During March, 1.160 direct labor-hours were worked at a rate of $37.50 per hour. Variable manufacturing overhead costs during March totaled $14.761. The direct materials purchases…

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