Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

need assistance in calculating what the material quantity variance for march be if 185,000 pounds were purchased and 160,000 pounds were used. Required information [The

need assistance in calculating what the material quantity variance for march be if 185,000 pounds were purchased and 160,000 pounds were used. image text in transcribed
Required information [The following information applies to the questions displayed below.) Preble Company manufactures 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 materials: 5 pounds at $8 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at $9 per hour Total standard cost per unit $ 40 45 27 $112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this materlal was used in producten. b. Direct laborers worked 70.000 hours at a rate of $16 per hout, c. Total variable manufacturing overhead for the month was $655,200. 6. If Preble had purchased 185,000 pounds of materials at $6.50 per pound and used 160,000 pounds in production, what would be the materials quantity variance for March? (Indicate the effect of ench variance by selecting for favorable. "U" for unfavorable and "None" for no effect i... zero variance.). Input all amounts as positive values.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

15th edition

978-0133428704

Students also viewed these Accounting questions