Question
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: 4 pounds at $9 per pound $ 36 Direct labor: 3 hours at $12 per hour 36 Variable overhead: 3 hours at $8 per hour 24 Total standard cost per unit $ 96 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. Direct laborers worked 58,000 hours at a rate of $13 per hour. Total variable manufacturing overhead for the month was $729,060. rev: 11_20_2017_QC_CS-109672 12. What variable manufacturing overhead cost would be included in the companys planning budget for March?
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: 4 pounds at $9 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $8 per hour Total standard cost per unit $ 36 36 24 $ 96 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: a. Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 58,000 hours at a rate of $13 per hour. c. Total variable manufacturing overhead for the month was $729,060. 2. What variable manufacturing overhead cost would be included in the company's planning budget for March? Variable manufacturing overhead costStep by Step Solution
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