[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 material: 4 pounds at $8.00 per pound \table[[{fcbfd2c16-e6db-4579-9aec-24d6bce88229} \table[[32.00],[32.00],[12.00]]],[$76.00 13bk[The following information applies to the questions displayed below.]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 $8.00 per poundDirect labor: 2 hours at $16 per hourVariable overhead: 2 hours at $6 per hourTotal standard variable cost per unit$ 32.0032.0012.00$ 76.00The company also established the following cost formulas for its selling expenses:htAdvertisingSales salaries and commissionsShipping expensesencesFixed Cost perMonthVariableCost perUnit Sold$ 320,000$ 340,000$ 24.00$ 15.00The planning budget for March was based on producing and selling 32,000 units. However, during March the companyactually produced and sold 37,000 units and incurred the following costs:a. Purchased 160,000 pounds of raw materials at a cost of $7.40 per pound. All of this material was used in production.b. Direct-laborers worked 67,000 hours at a rate of $17.00 per hour.c. Total variable manufacturing overhead for the month was $422,100.d. Total advertising, sales salaries and commissions, and shipping expenses were $329,000, $515,000, and $235,000,respectively.Foundational 9-14 (Algo)14. What is the spending variance related to sales salaries and commissions? (Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)Spending variance related to sales salaries and commissions

The variance is the difference between the standard and actual cost data. The variance can be…

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 $8.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit $ 32.00 32.00 12.00 $ 76.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 320,000 Variable Cost per Unit Sold $ 340,000 $ 24.00 $ 15.00 The planning budget for March was based on producing and selling 32,000 units. However, during March the company actually produced and sold 37,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.40 per pound. All of this material was used in production. b. Direct-laborers worked 67,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $422,100. d. Total advertising, sales salaries and commissions, and shipping expenses were $329,000, $515,000, and $235,000, respectively. Foundational 9-14 (Algo) 14. What is the spending variance related to sales salaries and commissions? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Spending variance related to sales salaries and commissions

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q