15 4121 ped bok int ences Required information [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: 4 pounds at $10 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at 56 per hour Total standard cost per unit $40 32 12 $84 The 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: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct laborers worked 62,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $390,600. 2. What raw materials cost would be included in the company's flexible budget for March? Raw material cost
15 4121 ped bok int ences Required information [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: 4 pounds at $10 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at 56 per hour Total standard cost per unit $40 32 12 $84 The 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: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct laborers worked 62,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $390,600. 2. What raw materials cost would be included in the company's flexible budget for March? Raw material cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hh2.
Account
![15
4121
ped
bok
int
ences
Required information
[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: 4 pounds at $10 per pound
Direct labor: 2 hours at $16 per hour
Variable overhead: 2 hours at 56 per hour
Total standard cost per unit
$40
32
12
$84
The 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:
a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production.
b. Direct laborers worked 62,000 hours at a rate of $17 per hour.
c. Total variable manufacturing overhead for the month was $390,600.
2. What raw materials cost would be included in the company's flexible budget for March?
Raw material cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32c0cfc8-ebc2-43a6-9c48-ae841504d819%2F845c838d-fae4-4e74-8f13-a782759b8f91%2F4dzd88_processed.jpeg&w=3840&q=75)
Transcribed Image Text:15
4121
ped
bok
int
ences
Required information
[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: 4 pounds at $10 per pound
Direct labor: 2 hours at $16 per hour
Variable overhead: 2 hours at 56 per hour
Total standard cost per unit
$40
32
12
$84
The 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:
a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production.
b. Direct laborers worked 62,000 hours at a rate of $17 per hour.
c. Total variable manufacturing overhead for the month was $390,600.
2. What raw materials cost would be included in the company's flexible budget for March?
Raw material cost
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