Puvo, Inc, Manufactures a Single Product in Which Variable Manufacturing Overhead

question 191

Multiple Choice

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:
During March, the following activity was recorded by the company:
• The company produced 2,400 units during the month.
• A total of 19,400 pounds of material were purchased at a cost of $13,580.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the warehouse.
• During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour.
• Variable manufacturing overhead costs during March totaled $14,061.
The direct materials purchases variance is computed when the materials are purchased.
-The labor efficiency variance for March is:

• A) $3,040 U
• B) $3,685 U
• C) $3,685 F
• D) $3,040 F

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Definitions:

Cognitive Neuroscience

A field of study that explores the neural mechanisms underlying cognitive functions such as perception, memory, and language.

Brain Activity

The functioning of the brain as evidenced by electrical, chemical, or metabolic changes.

Recollections

Memories or the act of retrieving past experiences or information from one's memory.

Mental Processes

Internal, covert activities of our minds such as thinking, feeling, and remembering.