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 labor-hours and its standard cost card per unit is

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 material: 6 pounds at $8.00 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $5 per hour Total standard variable cost per unit $ 48.00 42.00 15.00 $ 105.00 The company also established the following cost formulas for its selling expenses: Variable Fixed Cost Cost per per Month Unit Sold Advertising $ 250,000 Sales salaries and commissions $ 200,000 $ 17.00 Shipping expenses $ 8.00 The 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 $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 60,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $336,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $260,000, $480,000, and $165,000, respectively 6. What direct labor cost would be included in the company's flexible budget for March? Direct labor cost 7. What is the direct labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance.). Input the amount as a positive value.) Direct labor efficiency vananca 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost 10. What is the variable overhead efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Variable overhead officiency variance

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

Accounting Systems

Authors: Ronald W. Hilton, David E. Platt

10th Edition

1308172486, 978-1308172484

More Books

Students also viewed these Accounting questions

Question

consider how quantitative data can contribute to your research;

Answered: 1 week ago

Question

draw appropriate conclusions based on your data.

Answered: 1 week ago

Question

make sense of basic terminology used in quantitative data analysis;

Answered: 1 week ago