Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor
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Question:
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct laborhours and its standard cost card per unit is as follows:
Direct materials: pounds at $ per pound $
Direct labor: hours at $ per hour
Variable overhead: hours at $ per hour
Total standard cost per unit $
The planning budget for March was based on producing and selling units. However, during March the company actually produced and sold units and incurred the following costs:
Purchased pounds of raw materials at a cost of $ per pound. All of this material was used in production.
Direct laborers worked hours at a rate of $ per hour.
Total variable manufacturing overhead for the month was $
What direct labor cost would be included in the companys flexible budget for March?
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