Multiple Choice
Pardoe 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 3,000 units during the month.
• A total of 8,000 pounds of material were purchased at a cost of $23,000.
• There was no beginning inventory of materials on hand to start the month;at the end of the month,2,000 pounds of material remained in the warehouse.
• During March,1,600 direct labor-hours were worked at a rate of $6.50 per hour.
• Variable manufacturing overhead costs during March totaled $1,800.
The direct materials purchases variance is computed when the materials are purchased.
The variable overhead rate variance for March is:
A) $200 U
B) $600 U
C) $600 F
D) $200 F
Correct Answer:
Verified
Correct Answer:
Verified
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