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Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the...

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Accounting

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 7.50 pounds $ 0.80 per pound $ 6.00
Direct labor 0.70 hours $ 50.50 per hour $ 35.35
Variable manufacturing overhead 0.70 hours $ 10.20 per hour $ 7.14

During March, the following activity was recorded by the company:

The company produced 4,100 units during the month.

A total of 21,100 pounds of material were purchased at a cost of $15,280.

There was no beginning inventory of materials on hand to start the month; at the end of the month, 5,320 pounds of material remained in the warehouse.

During March, 1,260 direct labor-hours were worked at a rate of $47.50 per hour.

Variable manufacturing overhead costs during March totaled $15,761.

The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for March is:

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