Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct laborhours. The
company uses a standard cost system and has established the following standards for one unit of product:
During March, the following activity was recorded by the company:
The company produced units during the month.
A total of pounds of material were purchased at a cost of $
There was no beginning inventory of materials on hand to start the month; at the end of the month, pounds of material remained in the warehouse.
During March, direct laborhours were worked at a rate of $ per hour.
Variable manufacturing overhead costs during March totaled $
The direct materials purchases variance is computed when the materials are purchased.
The materials quantity variance for March is:
Multiple Choice
$
$ F
$ U
$ U
