Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $10.00 per pound Direct labor: 3 hours at $17 per hour Variable overhead: 3 hours at $7 per hour Total standard variable cost per unit $ 50.00 51.00 21.00 $ 122.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Variable Cost per Unit Sold Fixed Cost per Month $ 330,000 $ 360,000 $ 25.00 $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. b. Direct-laborers worked 68,000 hours at a rate of $18.00 per hour. c. Total variable manufacturing overhead for the month was $512,040. d. Total advertising, sales salaries and commissions, and shipping expenses were $340,000, $520,000, and $245,000, respectively. 3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) 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 $10.00 per pound Direct labor: 3 hours at $17 per hour Variable overhead: 3 hours at $7 per hour Total standard variable cost per unit $ 50.00 51.00 21.00 $ 122.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Variable Cost per Unit Sold Fixed Cost per Month $ 330,000 $ 360,000 $ 25.00 $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. b. Direct-laborers worked 68,000 hours at a rate of $18.00 per hour. c. Total variable manufacturing overhead for the month was $512,040. d. Total advertising, sales salaries and commissions, and shipping expenses were $340,000, $520,000, and $245,000, respectively. 3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
Expert Answer:
Answer rating: 100% (QA)
Materials Price Variance for March Calculation Actual quantity purch... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
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...
-
Questions: As a current investor, what is your overall assessment of Ford? How would you describe Ford's comparative performance and financial position? Examine Ford's financial ratios. What does...
-
Which stock has the highest risk-adjusted return (= Sharpe ratio)? Assume the risk-free rate is 4%. Stock Expected Return Standard Deviation A 15% 40% B 11% 20% C 10% 30% D 7% 10%
-
Sound waves with frequency 3000 Hz and speed 343 m/s diffract through the rectangular opening of a speaker cabinet and into a large auditorium of length d = 100 m. The opening, which has a horizontal...
-
How can you avoid confusing words that sound or seem similar?
-
Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $50,000 and you plan to spend all of it. However, you...
-
Distinguish different types of religious practitioners.
-
Winterborn Manufacturing Co. completed the following transactions during 2016: Jan. 16 Declared a cash dividend on the 4%, $100 par noncumulative preferred stock (950 shares outstanding). Declared a...
-
A developer is oering 450,000 fully amortising loans for their properties at 1.8 percent interest for 25 years. The current market rate for 25-year fully amortising loans is 2.25 percent. The...
-
Leaders who provide recognition and appreciation creating a strong team spirit and high morale (Kouzes & Posner, 2017). Even if results are not significant or goals are not met, it is important to...
-
(a) How many ways can three balls of different colors - yellow, red, and green - be put in a ball can? (b) How many different one-to-one correspondences are there between the two sets {1,2,3} and...
-
A picture is printed on an 7-17"-by-7" piece of photographic paper and placed symmetrically in a frame whose opening is 7" by 6". What are the dimensions of the strips on the sides of the picture...
-
On the payroll for Runners were listed 21 part-time workers at $7,200 each, 7 full-time general labourers at $12,400 each, 5 managers at $22,400 each, 2 vice-presidents at $42,500 each, and 1...
-
A5- drywall screw is countersunk (i.e., screwed until it is below the surface of the drywall) by to fasten a 16 4 "sheet of drywall to the ceiling joist. (a) How much of the screw extends into the...
-
A call center has four categories of employees, each paid a particular wage. Managers are paid $25 an hour, clerks are paid $15 an hour, technicians are paid $20 an hour, and administrative...
-
Read the case study the empowerment Effort and answer the question: What should each of these people have done that would have prevented the present situation?
-
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
-
Two cases of data concerning production costs, other expenses and sales are presented below. Required (a) Calculate the missing amounts for the letters (a) to (l). (b) Using the data in Case 1,...
-
An analysis of the accounts of Small Appliances Pty Ltd reveals the following manufacturing cost data for the month ended 30 June 2025. Required (a) Prepare the cost of goods manufactured schedule...
-
The following accounts and amounts (balances are normal balances) were taken from the records of New Manufacturers at 30 June 2025. Required (a) Prepare a cost of goods manufactured statement for the...
Study smarter with the SolutionInn App