Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve all parts - highlight or underline answers Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct

image text in transcribed

please solve all parts - highlight or underline answers

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 $10 per pound Direct labor: 3 hours at $14 per hour Varlable overhead: 3 hours at $4 per hour Total standard cost per unit $ 50 42 12 $104 The planning budget for March was based on producing and selling 29,000 units. However, during March the company actually produced and sold 34,200 units and incurred the following costs: a. Purchased 180,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production b. Direct laborers worked 74,000 hours at a rate of $15 per hour. c. Total variable manufacturing overhead for the month was $440,300. la.) What raw materials cost would be included in the company's planning budget for March? lb.) IfPreble had purchased 189,000 pounds of materials at $9.50 per pound and used 180,000 pounds in production, what would be 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). Do no round intermediate calculations.) 1c.) If Preble had purchased 189,000 pounds of materials at $9.50 per pound and used 180,000 pounds in production, what would be the materials quantity 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). Do not round intermediate calculations.) 1d.) What direct labor cost would be included in the company's planning budget for March

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Food And Beverage Cost Control

Authors: Lea R. Dopson, David K. Hayes

5th Edition

0470251395, 978-0470251393

More Books

Students also viewed these Accounting questions

Question

What penalty (if any) should Foster receive?

Answered: 1 week ago

Question

=+1. What is the schedule for this project?

Answered: 1 week ago