Required information

Skip to question

$[$The following information 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 unit is as follows:

Direct materials: $6$ pounds at $$8$ per pound $ $48$

Direct labor: $3$ hours at $$14$ per hour $42$

Variable overhead: $3$ hours at $$5$ per hour $15$

Total standard cost per unit $ $105$

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:

Purchased $160,000$ pounds of raw materials at a cost of $$7\mathrm{.}20$ per pound. All of this material was used in production.

Direct laborers worked $60,000$ hours at a rate of $$15$ per hour.

Total variable manufacturing overhead for the month was $$336,600.$

$1.$ What raw materials cost would be included in the company$$s planning budget for March?

$2.$ What raw materials cost would be included in the company$$s flexible budget for March?

$3.$ What is the materials quantity variance for March?

$4.$ What direct labor cost would be included in the company$$s planning budget for March?

$5.$ What direct labor cost would be included in the company$$s flexible budget for March?

$6.$ What is the labor rate variance for March?

$7.$ What is the labor efficiency variance for March?