Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct hours, and its standard costs per unit are as

image text in transcribed

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct hours, and its standard costs per unit are as follows: Direct materials: 6 kg at $8.00 per kg Direct labour: 3 hours at $14 per hour Variable overhead: 3 hours at $5 per hour Total standard cost per unit $ 48.00 42.00 15.00 $105.00 The company planned to produce and sell 19.000 units in March. However, during March the company actually produced sold 24.000 units and incurred the following costs: a. Purchased 160,000 kg of raw materials at a cost of $7.20 per kg. All of this material was used in production b. Direct labour 60,000 hours at a rate of $15 per hour. C. Total variable manufacturing overhead for the month was $336,600. Q1 . C. ro ou o 4 What is the materials price variance for March b. What is the materials quantity variance for March What is the labour rate variance for March d. What is the labour efficiency variance for March What is the variable overhead spending variance for March f. What is the variable overhead efficiency variance for March e

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

Systems Direct Auditing Practice Case IBM Book Workbook And 5.25 Disk

Authors: Dieter Weiss, Gaylord N. Smith

1st Edition

0538809051, 978-0538809054

More Books

Students also viewed these Accounting questions