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

question 71

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 rate variance for March is:

• A) $4,120 U
• B) $3,270 U
• C) $4,120 F
• D) $3,270 F

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Definitions:

Neural Impulse

The electrical signal that travels along a neuron, enabling it to communicate with other neurons or muscles.

Bulbs

Structures found in some plants, serving as storage organs during dormancy and allowing for vegetative reproduction.

Axon Terminals

Enlarged ends of axonal branches of the neuron, specialized for communication between cells.

End Of The Axon

The terminal part of a neuron's axon, where neurotransmitters are released to send signals to other neurons or muscle cells.