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Puvo, Inc., manufactures a single product in which variable manufacturing 9 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: Suipped Direct materials Direct labor Variable manufacturing overhead Standard Quantity 6.50 pounds 0.40 hours 0.40 hours Standard Price or Rate $ 1.30 per pound $40.50 per hour $ 9.20 per hour Standard Cost $ 8.45 $16.20 $ 3.68 During March, the following activity was recorded by the company: Puvo, Inc., manufactures a single product in which variable manufacturing 9 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: Skipped Direct materials Direct labor Variable manufacturing overhead Standard Quantity 6.50 pounds 0.40 hours 0.40 hours Standard Price or Rate $ 1.30 per pound $40.50 per hour $ 9.20 per hour Standard Cost $ 8.45 $16.20 $ 3.68 During March, the following activity was recorded by the company: 9 The company produced 3,100 units during the month. A total of 20,100 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. Skipped The direct materials purchases variance is computed when the materials are purchased. 10 A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours. Skipped Standard hours per unit of output Standard variable overhead rate 4.90 DLHS $11.55 per DLH The following data pertain to operations for the last month: Actual direct labor-hours Actual total variable manufacturing overhead cost Actual output 8,400 DLHS $95,960 1.600 units Skipped Actual output 1,600 units What is the variable overhead efficiency variance for the month? Multiple Choice 9 The company produced 3,100 units during the month. A total of 20,100 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 kipped The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice $4,089 F $4,465 U $4,465 F $4,089 U

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