券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 material: 4 pounds at $10.00 per poundDirect labor: 2 hours at $16 per hourVariable overhead: 2 hours at $6 per hour32.00Total standard variable cost per unitThe company also established the following cost formulas for its selling expenses:Variable Costper Unit SoldFixed CostAdvertisingSales salaries and commissionsper Month$ 270,000Shipping expenses0000The planning budget for March was based on producing and selling 30,000 units. However, during March the companyactually 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.13. What is the spending variance related to advertising? (Incicate the effect of each verlence by selecting "F" for favorable, "U" forunfevorable, and "None" for no effect (I.e., zero verlance.). Input the amount as a positive velue.)Spending variance related to advertising,< Prevof 1513.to searchTL

The difference between the actual amount of an expense and the expected (or planned) amount of an…

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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Bramble's standard quantities for 1 unit of product include 3 pounds of materials and 1.0 labor hours. The standard rates are $3 per pound and $5 per hour. The standard overhead rate is $10 per direct labor hour. The total standard cost per unit of Bramble's product is O $24.00. O $18.00. O $15.00. O $14.00.
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: 5 pounds at $9.00 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $9 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 45.00 42.00 27.00 $ 114.00 Fixed Cost per Month $ 300,000 $ 300,000 $22.00 $ 13.00 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs: Spending variance related to shipping expenses a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 65,000 hours at a…
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 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month per Unit Sold. Advertising Sales salaries and commissions Shipping expenses $ 19.00 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.…
Fluegge Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 5.7 liters $ 5.40 per liter Direct labor 0.70 hours $ 20.60 per hour Variable manufacturing overhead 0.70 hours $ 5.50 per hour The company has reported the following actual results for the product for December: Actual output 4,100 units Raw materials purchased 25,100 liters Actual price of raw materials $ 4.80 per liter Actual cost of raw materials purchased $ 120,480 Raw materials used in production 23,360 liters Actual direct labor-hours 2,700 hours Actual direct labor rate $ 21.20 per hour Actual direct labor cost $ 57,240 Actual variable overhead rate $ 5.90 per hour Actual variable overhead cost $ 15,930 The raw materials price variance…
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: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard variable cost per unit $ 40.00 28.00 10.00 $ 78.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Variable Cost per Unit Sold Fixed Cost per Month $ 200,000 $ 100,000 $ 12.00 $ 3.00 S The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sòld 30,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable…
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: 5 pounds at $10.00 per pound $ 50.00 Direct labor: 3 hours at $17 per hour 51.00 Variable overhead: 3 hours at $7 per hour 21.00 Total standard variable cost per unit $ 122.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 330,000 Sales salaries and commissions $ 360,000 $ 25.00 Shipping expenses $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. Direct-laborers worked 68,000 hours at a rate of…
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: 5 pounds at $10.00 per pound $ 50.00 Direct labor: 3 hours at $17 per hour 51.00 Variable overhead: 3 hours at $7 per hour 21.00 Total standard variable cost per unit $ 122.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 330,000 Sales salaries and commissions $ 360,000 $ 25.00 Shipping expenses $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. Direct-laborers worked 68,000 hours at a rate of…
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: $ 55.00 Direct material: 5 pounds at $11.00 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $7 per hour 36.00 21.00 Total standard variable cost per unit $112.00 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $ 280,000 $ 260,000 per Unit Sold Advertising Sales salaries and commissions $ 20.00 $ 11.00 Shipping expenses The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct-laborers worked 63,000 hours at a rate of $13.00 per hour. c. Total variable…
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 $9.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $36.00 45.00 18.00 $99.00 $ 210,000 $ 120,000 Direct labor cost S Variable Cost per Unit Sold The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs: $ 13.00 $ 4.00 a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 56,000 hours at a rate of $16.00 per hour. c.…
A standard cost card for one unit of a product may look like the following: Direct materials (4 pounds @ $1.25 per pound) $5.00 Direct labor (0.1 DLH @ $18 per hour) 1.80 Variable overhead (0.1 DLH @ $2.00 per hour) 0.20 Fixed overhead (0.1 DLH @ $4.60 per hour) 0.46 Total cost per unit $7.46 The standard cost to produce one unit is $7.46. The standard cost to produce 600 units are $ Of course, this is a simplification as the standard cost does not take fixed and variable costs into account. However, if the firm is producing at or near capacity, then the cost per unit of $7.46 could be multiplied by total units to get total standard cost. The standard cost card gives both unit and cost standards. The direct materials total of $5.00 is based on the use of four pounds of material at $1.25 per pound. Similarly, it should take six minutes (0.1 direct labor hour) to produce one unit. This makes it easy to determine total quantities and cost would be for multiple units. If 400 units were…
Standard Product CostsDeerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $8 per pound and 0.5 hour of direct labor costing, $14 per hour. The variable overhead rate is $12 per direct labor hour, and the fixed overhead rate is $16 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answer
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 $9.00 per pound $ 36.00 Direct labor: 3 hours at $12 per hour 36.00 Variable overhead: 3 hours at $8 per hour 24.00 Total standard variable cost per unit $ 96.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 230,000 Sales salaries and commissions $ 160,000 $ 15.00 Shipping expenses $ 6.00 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: Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. Direct-laborers worked 58,000 hours at a rate of…

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