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urgent help 8 Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour hours and its standard cost
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8 Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour hours and its standard cost card per unit is as follows. 25 pos Direct material: 4 pounds at $10 per pound Direct Tabour 2 hours at $16 per hour Variable overhead: 2 hours at 56 per hour Total standard variable cost per unit $40 32 12 $84 2025924 Fixed overhead was budgeted at $599,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses Fixed cost per Variable cost per Honth Unit Sol Advertising 270,000 Sales salaries and issons 170,000 14.00 Shipping expenses . The stone planning budget for March was based on produong and selling 30.000 unit However during March the company actually produced and sold 34,500 units and incurred the following cout w.chased 150,000 pounds of raw materials at a cost o 592 per pound. All of this man was used in production Olect.labourers worked 62.000 hours at a rate of $17 per hour Torvatiable manufacturing overhead for the month was $290,40 Anden overhead was $594000 To advertising, sales salaries and commission, and whipping expenses were $279.000 45.000 and 5122000, Sectively 00 The static e. planning) budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs 25 points a. Purchased 150,000 pounds of raw materials at a cost of $9.2 per pound. All of this material was used in production b. Direct-labourers worked 62,000 hours at a rate of $17 per hour. c Total variable manufacturing overhead for the month was $390,400. And fixed manufacturing overhead was $594,000 d. Total advertising, sales salaries and commissions, and shipping expenses were $279,000, 5645,000 and $122.000, respectively 8 02:59:42 Required: if Preble had purchased 177,000 pounds of materials at 92 per pound and used 150,000 pounds in production, what would be the materials price variance for March? (Input the amount as a positive value Leave no cells blank - be certain to entero wherever required. Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effectie zero variance.).) Material price variance Step by Step Solution
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