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Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based
Required information [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 material: 5 pounds at $10.00 per $ 50.00 pound Direct labor: 3 hours at $17 per hour 51.00 Variable overhead: 3 hours at $7 per 21.00 hour Total standard variable cost per unit $122.00 The company also established the following cost formulas for its selling expenses: Fixed cost per Variable Cost per Month Unit Sold Advertising $ 330,000 Sales salaries and $ 360,000 25.00 commissions Shipping expenses 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. b. Direct-laborers worked 68,000 hours at a rate of $18.00 per hour. c. Total variable manufacturing overhead for the month was $512,040. d. Total advertising, sales salaries and commissions, and shipping expenses were $340,000, $520,000, and $245,000. respectively 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost
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