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: 5 pounds at $9 per poundDirect labor: 3 hours at $14 per hourVariable overhead: 3 hours at $8 per hourTotal standard cost per unit$ 454224$ 111The planning budget for March was based on producing and selling 28,000 units. However, during March the companyactually produced and sold 34,000 units and incurred the following costs: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 per hour.c. Total variable manufacturing overhead for the month was $565,110.13. What variable manufacturing overhead cost would be included in the company's flexible budget for March?Variable manufacturing overhead cost

The above answer can be explained as under - Variable manufacturing overhead cost for March = Number…

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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Dubberly Corporation's cost formula for its manufacturing overhead is $32,100 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,820 machine-hours, but the actual level of activity was 7,760 machine-hours. The actual manufacturing overhead for the month was $556,790. The activity variance for manufacturing overhead in March would be closest to: Multiple Cholce $24,210 U $24,210 F $3,840 F $3,840 U
Vin Diesel Company uses a standard costing system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. The company’s total applied factory overhead was P315,000 last year when the company used 32,000 direct labor hours as it activity base. If the variable factory overhead rate was P8 per direct labor hour, and if 30,000 standard labor hours were allowed for the output of that year, then the total budgeted fixed factor overhead for that year must have been?
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: 6 pounds at $8 per pound Direct labor: 4 hours at $17 per hour Variable overhead: 4 hours at $4 per hour Total standard cost per unit $ 48 68 16 $132 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 72,000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960. Foundational 10-1 Required: 1. What raw materials cost would be included in the company's planning budget for March?
ABC Pillow produces and sells animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Administrative expenses, all fixed $12,000 per month Ending inventories: Direct materials $38 per unit $ 2 per unit $60,000 per month -0- WIP -0- Finished goods 750 units 11) What is gross margin when using absorption costing? A) $95,000 B) $109,500 C) $154,500 D) $49,500
Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $850,000 comprised of $300,000 of variable costs and $550,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours. During the current year, Byrd produced 81,800 putters, worked 97,800 direct labor hours, and incurred variable overhead costs of $173,825 and fixed overhead costs of $642,300. (a) Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.) Variable Fixed Predetermined Overhead Rate
Derma COmpany applies overhead on the basis of direct labour hours in department B. Two direct labour hours are required for each product unit. Planned prodcution for the period was budgeted at 9,000 units. The 17,200 hours worked during the period resulted in production of 8,500 units. Manufacturing overhed was budgeted at $135,000 for the period, 20% of this costs is fixed. Variable manufacturing overheads costs incurred were $108,500, and fixed manufacturing overhead costs were $28,000. compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances
Morris Company allocates manufacturing overhead based on machine hours. Each chair produced should require 4 machine hours. According to the static budget, the following is expected to incur: 2,200 machine hours per month (550 chairs x 4 hours per chair) $11,440 in variable manufacturing overhead costs $9,000 in fixed manufacturing overhead costs During January, Morris Company actually used 2,100 machine hours to make 510 chairs. The company spent $6,800 in variable manufacturing overhead costs and $9,100 in fixed manufacturing overhead costs. What is the fixed overhead cost variance?
Krump Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine- hours. The actual manufacturing overhead for the month was $558,610. The activity variance for manufacturing overhead in March would be closest to: O $22,410 U $22,410 F O $1,280 F O $1,280 U
Required information [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 materials: 4 pounds at $10 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour $ 40 32 12 Total standard cost per unit $ 84 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 per hour. c. Total variable manufacturing overhead for the month was $390,600. 11. What is the labor spending variance for March? (Indicate the effect of each variance by selecting "F" for…
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: 6 pounds at $8 per pound $ 48 Direct labor: 4 hours at $17 per hour 68 Variable overhead: 4 hours at $4 per hour 16 Total standard cost per unit $ 132 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. Direct laborers worked 72,000 hours at a rate of $18 per hour. Total variable manufacturing overhead for the month was $336,960. 1. What raw materials cost would be included in the company’s planning budget for March? 2. What raw materials cost would be included in the company’s flexible budget for March? 3. What is the…
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 $10 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at so per hour Total standard cost per unit $ 84 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 per hour. c. Total variable manufacturing overhead for the month was $390,600 References Foundational 10-1 (Algo) Required: 1. What raw materials cost would be included in the company's planning budget for March?

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