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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: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $270,000 $ 240,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 10.00 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 $17.00 per hour. c. Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Buis Sales salares and commissions. < Prev 12 13 14 15 Next of 15 re to search TPL

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: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $270,000 $ 240,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 10.00 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 $17.00 per hour. c. Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Buis Sales salares and commissions. < Prev 12 13 14 15 Next of 15 re to search TPL

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $270,000 $ 240,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 10.00 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 $17.00 per hour. c. Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Buis Sales salares and commissions. < Prev 12 13 14 15 Next of 15 re to search TPL
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: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $270,000 $ 240,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 10.00 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 $17.00 per hour. c. Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Buis Sales salares and commissions. < Prev 12 13 14 15 Next of 15 re to search TPL
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