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[LO2 , LO3, L04Q1 Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs
[LO2 , LO3, L04Q1 Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows: $40.00 28.00 Direct materials: 5 kg at $8.00 per kg Direct labour: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit 10.00 $78.00 The company planned to produce and sell 25,000 units in March. However, during March the company actually produced and sold 30,000 units and incurred the following costs: Purchased 160,000 kg of raw materials at a cost of $7.50 per kg. All of this material was used in production Direct labour: 55,000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was $280,500. Page 421 Required: 10-1 What is the materials price variance for March? 10-2 What is the materials quantity variance for March? 10-3 If Preble had purchased 170,000 kg of materials at $7.50 per kg and used 160,000 kg in production, what would be the materials price variance for March? 10-4 If Preble had purchased 170,000 kg of materials at $7.50 per kg and used 160,000 kg in production, what would be the materials quantity variance for March? 10-5 What is the labour rate variance for March? 10-6 What is the labour efficiency variance for March? 10-7 What is the variable overhead spending variance for March? 10-8 What is the variable overhead rate variance for March
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