Question
Summary: 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
Summary: 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 materials: 5 pounds at $8.00 per pound --> $40.00 Direct labor: 2 hours at $14 per hour --> $28.00 Variable overhead: 2 hours at $5 per hour --> $10.00 Total standard cost per unit --> $78.00
***NOTE: ^ Refer to info above if picture is too blurry. |
1.) What raw materials cost would be included in the company's planning budget for March? 2.) What raw materials cost would be included in the companys flexible budget for March?
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