Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls help with the answers . Need to give the answers in hour. Preble Company manufactures one product. Its variable manufacturing overhead is applied to
pls help with the answers . Need to give the answers in hour.
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: Direct material: 6 pounds at $8 per pound Direct labour. 4 hours at $10 per hour Variable overhead: 4 hours at $5 per hour Total standard variable cost per unit $ 48 52 20 $120 Fixed overhead was budgeted at $621,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Fixed cost per Month $380,000 $ 280,000 Advertising Sales salaries and commissions Shipping expenses $11.00 $ 5.00 The static (ie., planning) budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,500 units and incurred the following costs. a. Purchased 170,000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production. b. Direct-labourers worked 73,000 hours at a rate of $14 per hour. c. Total variable manufacturing overhead for the month was $427.000. And fixed manufacturing overhead was $616.000. d. Total advertising, sales salaries and commissions, and shipping expenses were $389,000 $550 000, and $133,000. respectively. Required: What raw materials cost would be included in the company's flexible budget for March? Raw material costStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started