Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows:Direct materials: 4 pounds at $9 per poundDirect labor: 3 hours at $12 per hourVariable overhead: 3 hours at $8 per hourTotal standard cost per unitThe planning budget for March was based on producing and selling 28,000 units. However, during March the companyactually produced and sold 33,000 units and incurred the following costs:$363624$ 96a. Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.b. Direct laborers worked 58,000 hours at a rate of $13 per hour.c. Total variable manufacturing overhead for the month was $729,060.15. What is the variable overhead efficiency variance for March? (Do not round intermediate calculations. Round the actual overheadrate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" forno effect (i.e., zero variance.). Input all amounts as positive values.)Variable overhead efficiency varianceF

Variance is a tool used to identify variances between an organization's actual and budgeted data,…

Answered: Preble Company manufactures one…

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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Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 51,000 machine hours per year, which represents 25,500 units of output. Annual budgeted fixed factory overhead costs are $255,000 and the budgeted variable factory overhead cost rate is $2.30 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 18,800 units, which took 40,000 machine hours. Actual fixed factory overhead costs for the year amounted to $249,400 while the actual variable overhead cost per unit was $2.20. Based on the information provided above, prepare the appropriate journal entries to record: (a) actual factory overhead costs for the year, (b) the applied factory overhead costs for the year (both variable and fixed), and (c) the total flexible-budget variance and the production volume variance for the period. Assume that the…
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rpóration makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.3 hours $ 14.00 per hour $ 5.00 per hour $ 4.20 $ 1.50 Variable overhead 0.3 hours In November the company's budgeted production was 5,300 units, but the actual production was 5,100 units. The company used 1,650 direct labor-hours to produce this output. The actual variable overhead cost was $7,590. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for November is: Multiple Choice $552 F $600 U $552 U $600 F
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Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, eg. 2.75.) Predetermined Overhead Rate (b) eTextbook and Media Compute the applied overhead for Crane for the year. Overhead Applied Variable $ 2.50 Fixed Attempts: 1 of 3 used
Dubberly Corporation's cost formula for its manufacturing overhead is $32,300 per month plus $52 per machine-hour. For the month of March, the company planned for activity of 7,860 machine-hours, but the actual level of activity was 7,780 machine-hours. The actual manufacturing overhead for the month was $465,470. The activity variance for manufacturing overhead in March would be closest to: Multiple Choice $24,450 U $4,160 F $4,160 U $24,450 F
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