CH$-10$ Q$-7$

Required information

Skip to question

$[$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 $$9$ per pound $-$ $ $45$

Direct labor: $3$ hours at $$14$ per hour $-42$

Variable overhead: $3$ hours at $$8$ per hour $-24$

Total standard cost per unit $-$ $ $111$

The planning budget for March was based on producing and selling $28,000$ units. However, during March the company actually produced and sold $34,000$ units and incurred the following costs:

Purchased $180,000$ pounds of raw materials at a cost of $$8\mathrm{.}50$ per pound. All of this material was used in production.

Direct laborers worked $69,000$ hours at a rate of $$15$ per hour.

Total variable manufacturing overhead for the month was $$565,110.$

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? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$4.$ What is the materials quantity variance for March? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$5.$ If Preble had purchased $184,000$ pounds of materials at $$8\mathrm{.}50$ per pound and used $180,000$ pounds in production, what would be the materials price variance for March? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$6.$ If Preble had purchased $184,000$ pounds of materials at $$8\mathrm{.}50$ per pound and used $180,000$ pounds in production, what would be the materials quantity variance for March? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$7.$ 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? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$10.$ What is the labor efficiency variance for March? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$11.$ What is the labor spending variance for March? Note: Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$12.$ What variable manufacturing overhead cost would be included in the company$$s planning budget for March?

$13.$ What variable manufacturing overhead cost would be included in the company$$s flexible budget for March?

$14.$ What is the variable overhead rate variance for March? Note: Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

$15.$ What is the variable overhead efficiency variance for March? Note: Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance.$).$ Input all amounts as positive values.

P$.$S$.$ Please solve the full problem.