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 Cost Direct materials $ 1.30 per pound $ 8.45 $ 16.20 $ 3.68 Direct labor 0.40 hours $40.50 per hour Variable manufacturing overhead 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 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. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Mulsple Cholce $4.089 F
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 Cost Direct materials $ 1.30 per pound $ 8.45 $ 16.20 $ 3.68 Direct labor 0.40 hours $40.50 per hour Variable manufacturing overhead 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 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. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Mulsple Cholce $4.089 F
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13EB: Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total...
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