Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required Information The Foundational 15 (LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [The following information applies to the questions displayed below) Preble Company manufactures one product. Its

image text in transcribed
Required Information The Foundational 15 (LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [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 $8.ee per pound Direct labor: 2 hours at $14 per hour variable overhead: 2 hours at $5 per hour Total standard variable cost per unit $40.ee 28.00 10.ee $78.ee The company also established the following cost formulas for its selling expenses: Fixed cost per Month $ 200,000 $ 100,eee Variable cost per Unit Sold Advertising Sales salaries and connissions Shipping expenses $12.00 $ 3.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour c. Total variable manufacturing overhead for the month was $280,500. d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455.000, and $115,000, respectively. Foundational 9-12 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Advertising Sales salaries and commissions 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_2

Step: 3

blur-text-image_3

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

The Internal Auditors Guide To Risk Assessment

Authors: Rick A. Wright Jr.

2nd Edition

1634540158, 9781634540155

More Books

Students also viewed these Accounting questions

Question

Define Management or What is Management?

Answered: 1 week ago

Question

What do you understand by MBO?

Answered: 1 week ago