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 labour- hours, and its standard costs per unit

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour- hours, and its standard costs per unit are as follows: Direct materials: 6 kg at $8.00 per kg $ 48.00 Direct labour: 3 hours at $14 per hour Variable overhead: 3 hours at $5 per hour 42.00 15.00 $105.00 Total standard cost per unit The company planned to produce and sell 19.000 units In March. However, during March the company actually produced and 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 a. What is the materials price variance for March b. What is the materials quantity variance for March c. What is the labour rate variance for March d. What is the labour efficiency variance for March e. What is the variable overhead spending variance for March f. What is the variable overhead efficiency variance for March

Step by Step Solution

3.47 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

a What is the materials price variance for March ANS WER Materials price varian... 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

Introduction to Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

7th edition

978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792

More Books

Students also viewed these Accounting questions