Chapters 9 & 10 Help Save & Exit Submit 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: Direct materials Direct labor Variable manufacturing overhead Standard Quantity 6.00 pounds 0.60 hours 0.60 hours Standard Price or Rate $ .80 per pound $35.50 per hour $ 8.70 per hour Standard Cost $ 4.80 $21.30 $ 5.22 During March, the following activity was recorded by the company: The company produced 2,600 units during the month. A total of 19,600 pounds of material were purchased at a cost of $13.780. . There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,820 pounds of material remained in the warehouse. During March, 1,110 direct labor-hours were worked at a rate of $32.50 per hour. Variable manufacturing overhead costs during March totaled $14,261 The direct materials purchases variance is computed when the materials are purchased The variable overhead rate variance for March is: The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is: Multiple Choice O $4,604 F O O $5,052 U $5,0520 o $5,052 F o $4,604 U