Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Foundational 15 (LO10-1, LO10-2, LO10-3) (The following information applies to the questions displayed below.) Preble Company manufactures one product. Its variable manufacturing overhead is

image text in transcribed

The Foundational 15 (LO10-1, LO10-2, LO10-3) (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 materials: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $ 40.00 28.00 10.00 $78.00 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. Foundational 10-11 1. What is the labor spending variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for infavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) Answer is complete but not entirely correct. Labor spending variance $ 125,000 F

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

101 Recipes For Audit In Psychiatry

Authors: Clare Oakley, Floriana Coccia, Neil Masson, Iain McKinnon, Meinou Simmons

1st Edition

1908020016, 978-1908020017

More Books

Students also viewed these Accounting questions