Puvo, Incorporated, 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 or Rate Cost
Direct materials 5.8 pounds $ 0.60 per pound $ 3.48
Direct labor 0.5 hours $ 33.50 per hour $ 16.75
Variable manufacturing
overhead 0.5 hours $ 8.50 per hour $ 4.25
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 variable overhead efficiency variabce for march is:.
a. $6.750 F.
b. $19.000 F.
c. $19.000 U.
d. $6.750 U.

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Answer (d) all of the above;