Preble Company manufactures one product. Its variable manufacturing overhead is applied to production 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 $8 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 don and commissions $ 45.00 42.00 24.00 $111.00 Fixed Cost per Month $ 340,000 $ 380.000 $26.00

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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T4.

 

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 $8 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
24.00
$ 111.00
Fixed Cost
per Month
$ 340,000
$ 380,000
The planning budget for March was based on producing and selling 28,000 units. However, during March the company
actually produced and sold 34,000 units and incurred the following costs:
Foundational 9-9 (Algo)
$26.00
$ 17.00
a. Purchased 180,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production.
b. Direct-laborers worked 69,000 hours at a rate of $15.00 per hour.
c. Total variable manufacturing overhead for the month was $565,110.
d.
Total advertising, sales salaries and commissions, and shipping expenses were $345,000, $525,000, and $255,000,
respectively.
Variable manufacturing overhead cost
9. What variable manufacturing overhead cost would be included in the company's flexible budget for March?
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: 5 pounds at $9.00 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $8 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 24.00 $ 111.00 Fixed Cost per Month $ 340,000 $ 380,000 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: Foundational 9-9 (Algo) $26.00 $ 17.00 a. Purchased 180,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production. b. Direct-laborers worked 69,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $565,110. d. Total advertising, sales salaries and commissions, and shipping expenses were $345,000, $525,000, and $255,000, respectively. Variable manufacturing overhead cost 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March?
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