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: 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.
1. What raw materials cost would be included in the companys planning budget for March?
Can you answer 1-15 with these numbers?
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