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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
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 | $ 50 |
---|---|
Direct labor: 4 hours at $16 per hour | 64 |
Variable overhead: 4 hours at $7 per hour | 28 |
Total standard cost per unit | $ 142 |
The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs:
- Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
- Direct laborers worked 57,000 hours at a rate of $17 per hour.
- Total variable manufacturing overhead for the month was $653,220.
8. What direct labor cost would be included in the company's flexible budget for March?
38 Part 8 of 15 222 points 1 Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. lts 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 &t %18 per pound % 5@ Direct labor: 4 hours at $16 per hour 64 Variable overhesd: 4 hours at %7 per hour 28 Total standard cost per unit $ 142 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually preduced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct laborers worked 57,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $653,220. 8. What direct labor cost would be included in the company's flexible budget for March? 3 Answer is complete but not entirely correct. 5 912,00 Maodule 4 Exam Review @@ 33 Part8of 15 222 points G References Required information [The following infarmation applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unitis as follows: Direct materials: 5 pounds at $18 per pound $ 58 Direct labor: 4 hours at $16 per hour 84 Variable overhead: 4 hours at 7 per hour 28 Total standard cost per unit $ 142 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct laborers worked 57,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $653,220. 8. What direct labor cost would be included in the company's flexible budget for MarchStep by Step Solution
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