Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

uring overhead is applied to pro Preble Company manufactures one product. Its variable manufacturing overhead is anal duction based on direct labor-hours and its standard

image text in transcribed
uring overhead is applied to pro Preble Company manufactures one product. Its variable manufacturing overhead is anal duction based on direct labor-hours and its standard cost card per unit is as follows: (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost (1)x12 $40.00 Inputs Direct materials .................. Direct labor..................... Variable overhead................. Total standard cost per unit...... 5 pounds 2 hours 2 hours $8.00 per pound $14 per hour $5 per hour 28.00 10.00 $78.00 The planning budget for March was based on producing and selling 25,000 units. However, dur. ing 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. Required: 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 company's flexible budget for March? 3. What is the materials price variance for March? 4. What is the materials quantity variance for March? 5. If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160.000 pounds in production, what would be the materials price variance for March? 6. If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,00 pounds in production, what would be the materials quantity variance for March? 7. What direct labor cost would be included in the company's planning budget for March? 8 What direct labor cost would be included in the company's flexible budget for March 9. What is the labor rate variance for March? 10. What is the labor efficiency variance for March? 11. What is the labor spending variance for March? 12 What variable manufacturing overhead cost would be included in the company's plann budget for March? variable manufacturing overhead cost would be included in the company's flexible bu get for March? 14. What is the variable overhead rate variance for March? 15. What is the variable overhead efficiency variance for March? N

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

Auditing Today

Authors: Emile Woolf

6th Edition

0135894662, 978-0135894668

More Books

Students also viewed these Accounting questions