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 $9 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $8 per hour Total standard cost per unit $36 36 24 $ 96 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: a. 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.
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 $9 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $8 per hour Total standard cost per unit $36 36 24 $ 96 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: a. 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.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...
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