Friday November 8 Preble Company manufacturos one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit 35.00 $ 48.00 12.00 $95.00 The company also ostablished the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising 360,000 420,000 $ Sales salaries and commissions $ 28.00 $ Shipping expenses $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours al a rate of $17.00 per hour. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. a. C. 1. What raw materials cost would be included in the company's flexible budget for March? Kch oct Cpt Friday November 8 2. What is the materials quantity variance for March?(ndicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e... zero variance.). Input the amount as a positive value.) s uo vlpu 3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Sevec dxet O3e ou3t5A 4. If Preble had purchased 186.000 pounds of materials at $6.80 per pound and used 175.000 pounds in production, what would be the materials quantity variance for March? (I ndicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) 5. If Preble had purchased 186.000 pounds of materials at $6.80 per pound and used 175,000 pound lun production, what would be the materials price variance for March2indlicate the effect of each variance by selecting "F" for favorable, "U" for unfavorahle, and "None" for no effect (i.e.., zero variance.). Input the amount as a positive value.) bobelo ad m od 6stueuld be od 6. What direct labor cost would be included in the company's flexible budget for March? Friday November 8 7. What is the direct labor efficiency variance for March2(Indicate the effect of each variance by selocting Ffor favorable, "U" for unfavorable, and "None" for no effect (i.e.. zero variance.). Input the amount as a positive value.) 8. What is the direct labor rate variane for March?lndicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance.). Input the amount as a positive value.) 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? i ed tloa to odet obt qmoo ond at b CsM0 ha 10. What is the variable overhead efficioncy variance for March?(Indicate the offect of each variance by Friday November 8 selecting "F" for favorabla, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) 11. What is the variable overhead rato variance for March?(indicate the offect of each variance by selecting "F" for favorable, "U" for unfavorable. and "None" for no effect (i.a., zero variance.). Input the amount as a positive value.) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? inlonhcd-a,iea Astk r as Invoris Friday November 8 13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) 14. What is the spending variance related to $ales salaries and commissions?(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) 15. What is the spending variance related to shipping expenses?(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
