Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

sorry this is a four part question (The following information applies to the questions displayed below.) Preble Company manufactures one product. Its variable manufacturing overhead

image text in transcribedsorry this is a four part question
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
(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 $8.00 per pound $40.00 Direct labort 2 hours at $10 per hour Variable overhead: 2 hours at $5 per hour Total standard variable cost per unit $ 78.00 The company also established the following cost formulas for its selling expenses 28.00 10.00 Variable Fixed Cost per cost per Month Unit Sold Advertising $ 200,000 Sales salaries and commissions $100,000 $12.00 Shipping expenses $ 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 mateffat 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 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 Foundational 9-13 (Static) 13. What is the spending vartance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero voronce). Input the amount as a positive value.) Foundational 9-14 (Static) 14. What is the spending vartance related to sales salaries and commissions? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.o., zero variance.). Input the amount oso positive volue) Spending on the thesis commissions Foundational 9-15 (Static) 15. What is the spending varlanice related to shipping expenses? (Indicate the effect of each vorionce by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., 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

Corporate Accounting Vol 1

Authors: Dr S. Kr. Paul, Prof. Chandrani Paul

1st Edition

164725146X, 9781647251468

More Books

Students also viewed these Accounting questions

Question

Consider the financial statements below: decimal

Answered: 1 week ago