Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required InformationRequired Information [ The following information applles to the questions displayed below. ] Preble Company manufactures one product. Its varlable manufacturing overhead is applied

Required InformationRequired Information
[The following information applles to the questions displayed below.]
Preble Company manufactures one product. Its varlable manufacturing overhead is applied to production based on direct
labor-hours and its standard cost card per unit is as follows:
The planning budget for March was based on producing and selling 30,000 units. However, during March the company
actually produced and sold 34,000 units and incurred the following costs:
a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this materlal was used in production.
b. Direct laborers worked 71,000 hours at a rate of $17 per hour.
c. Total variable manufacturing overhead for the month was $340,090.
If Preble had purchased 186,000 pounds of materlals at $6.80 per pound and used 175,000 pounds in production, what would be
the materlals quantity varlance for March?
Note: Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero
variance.). Input all amounts as positive values.
[The following information applies to the questions displayed below.]
Preble Company manufactures one product. Its varlable manufacturing overhead is applied to production based on direct
labor-hours and its standard cost card per unit is as follows:
The planning budget for March was based on producing and selling 30,000 units. However, during March the company
actually produced and sold 34,000 units and incurred the following costs:
a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this materlal was used in production.
b. Direct laborers worked 71,000 hours at a rate of $17 per hour.
c. Total varlable manufacturing overhead for the month was $340,090.
If Preble had purchased 186,000 pounds of materlals at $6.80 per pound and used 175,000 pounds in production, what would be
the materlals price variance for March?
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero
variance.). Input all amounts as positive values.
image text in transcribed

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 Controllers Toolkit

Authors: Christine H. Doxey

1st Edition

1119700647, 9781119700647

More Books

Students also viewed these Accounting questions