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Sagot :
The variable overhead rate variance for March for Puvo Incorporated is $3,036 Unfavorable.
What is the variable overhead rate variance?
The variable overhead rate variance calculates the difference between the actual variable overhead incurred and the standard variable overhead.
The standard variable overhead is the actual hours worked multiplied by the standard variable overhead rate.
Data and Calculations:
Standard Quantity Standard Price or Rate Standard Cost
Direct materials 7.40 pounds $ 1.20 per pound $ 8.88
Direct labor 0.40 hours $ 49.50 per hour $ 19.80
Variable manufacturing
overhead 0.40 hours $ 10.10 per hour $ 4.04
Actual production = 4,000 units
Actual direct labor-hours = 1,250 DLHs
Actual variable overhead costs = $15,661
Variable overhead rate variance = actual variable manufacturing overhead - actual hours worked x standard variable overhead rate
= $15,661 - (1,250 x $10.10)
= $3,036 Unfavorable
Thus, the variable overhead rate variance for March for Puvo Incorporated is $3,036 Unfavorable.
Learn more about overhead variances at https://brainly.com/question/23318894
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