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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 3 hours at $14 per hour Variable overhead: 3 hours at $5 per hour Total standard variable cost per unit $ 48 42 15 $185 Fixed overhead was budgeted at $595,000. 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 $250,000 $150,000 Advertising Sales salaries and commissions Shipping expenses $12.00 $ 4.00 The static (ie., planning) budget for March was based on producing and selling 19.000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs. a. Purchased 160.000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production b. Direct-labourers worked 60,000 hours at a rate of $15 per hour. c. Total variable manufacturing overhead for the month was $336,600 And fixed manufacturing overhead was $590,000 d. Total advertising, sales salaries and commissions and shipping expenses were $259 000, $430,000, and $120,000, respectively. Required: What direct labour cost would be included in the company's flexible budget for March? Fixed overhead was budgeted at $595,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses: Fixed Cost pen Month $250,000 $150,000 Variable cast per Unit Sold Advertising Sales salaries and commissions Shipping expenses $12.00 $ 4.00 The static (i.e., planning) budget for March was based on producing and selling 19,000 units. However during March the company actually produced and sold 24,000 units and incurred the following costs. a. Purchased 160,000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production. b. Direct-labourers worked 60,000 hours at a rate of $15 per hour. c. Total variable manufacturing overhead for the month was $336,600. And fixed manufacturing overhead was $590,000. d. Total advertising, sales salaries and commissions, and shipping ewenses were $259,000, $430,000, and $120,000, respectively. Required: What direct labour cost would be included in the company's flexible budget for March? Direct labour costStep by Step Solution
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