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

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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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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
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Rocks Industries has two products. They manufactured 12,539 units of product A and 8.254 units of product B. The data are: Â What is the activity rate for each cost pool?
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Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
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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…
World Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output O 24.979 grams O 28,980 grams O 26,900 grams O 26,910 grams 6.9 grams 0.90 hours 0.90 hours Standard Price or Rate S 9.20 per gram S 21.20 per hour S 3.60 per hour The actual output for the period was 3,900 units. The standard amount of materials allowed for the actual output is closest to:

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