Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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: $50.00 64.00 Direct material: 5 pounds at $10.00 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at $7 per hour Total standard variable cost per unit $142.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month $ 220.000 $ 140,000 Variable Cost per Unit 3old Advertising Sales salaries and commissions Shipping expenses $ 14.00 $ 5.00 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: a. Purchased 164.000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $653,220. d. Total advertising, sales salaries and commissions, and shipping expenses were $235.000. $465,000, and $135.000, respectively. 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 (Le.. zero variance.). Input the amount as a positive value.) Spending variance related to shipping expenses

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

Managerial Accounting For Undergraduates

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

1st Edition

1618531123, 9781618531124

More Books

Students also viewed these Accounting questions

Question

What do you plan on doing upon receiving your graduate degree?

Answered: 1 week ago

Question

Learn about the labor context in Canada and Quebec.

Answered: 1 week ago