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 stendard cost card per unit is

image text in transcribed

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its stendard cost card per unit is as follows: The compeny also established the following cost formulas for its selling expenses: The planning budget for March was bosed on producing and selling 19.000 units. However, during Morch the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160000 pounds of row materials at a cost of $720 per pound. All of this material was used in production. b. Direct-laborers worked 60000 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 $155,000, resperctwoly. 11. What is the variable overhead rate 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.) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? 13. What is the spending variance related to advertising? (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.) 14. What is the spending variance related to sales salaries and commissions? (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.) 15. What is the spending variance related to shipping expenses? (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.)

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

Effective Use Of Teams For IT Audits

Authors: Martin Krist

1st Edition

0849398282, 978-0849398285

More Books

Students also viewed these Accounting questions