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Please provide detailed help Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost
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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 $9 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $8 per hour Total standard cost per unit s45 42 24 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34,000 units and Incurred the followlng costs: a. Purchased 180,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used In production. b. Direct laborers worked 69,000 hours at a rate of $15 per hour. C. Total variable manufacturing overhead for the month was $565110. Foundational 10-5 5. If Preble had purchased 184,000 pounds of materlals at $8.50 per pound and used 180,000 pounds In production, what would be the materlals price varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance.). Input all amounts as positlve values. Do not round Intermedlete calculatlons.) Answer is complete but not entirely correct. aterials price variance 126,000 FStep by Step Solution
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