! Required information Foundational [LO10-1, LO10-2, LO10-3] [The following information applies to the questions displayed below] Preble Company manufactures one product. Its varlable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit Is as follows: Direct materlals: 5 pounds at $8.00 per pound 40.00 28.00 Direct labor:2 hours at $14 per hour 10.00 Varlable overhead: 2 hours at $5 per hour 78.00 $ Total standard cost per unit The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and Incurred the following costs: a. Purchased 160,000 pounds of raw materlals 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 varlable manufacturing overhead for the month was $280,500 Foundational 10-11 11. What Is the labor spending variance for March? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e. zero varlance.).) 15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance.) Do not round intermediate calculations.)
! Required information Foundational [LO10-1, LO10-2, LO10-3] [The following information applies to the questions displayed below] Preble Company manufactures one product. Its varlable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit Is as follows: Direct materlals: 5 pounds at $8.00 per pound 40.00 28.00 Direct labor:2 hours at $14 per hour 10.00 Varlable overhead: 2 hours at $5 per hour 78.00 $ Total standard cost per unit The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and Incurred the following costs: a. Purchased 160,000 pounds of raw materlals 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 varlable manufacturing overhead for the month was $280,500 Foundational 10-11 11. What Is the labor spending variance for March? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e. zero varlance.).) 15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance.) Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![!
Required information
Foundational [LO10-1, LO10-2, LO10-3]
[The following information applies to the questions displayed below]
Preble Company manufactures one product. Its varlable manufacturing overhead is
applied to production based on direct labor-hours and its standard cost card per unit Is
as follows:
Direct materlals: 5 pounds at $8.00 per
pound
40.00
28.00
Direct labor:2 hours at $14 per hour
10.00
Varlable overhead: 2 hours at $5 per hour
78.00
$
Total standard cost per unit
The planning budget for March was based on producing and selling 25,000 units.
However, during March the company actually produced and sold 30,000 units and
Incurred the following costs:
a. Purchased 160,000 pounds of raw materlals 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 varlable manufacturing overhead for the month was $280,500
Foundational 10-11
11. What Is the labor spending variance for March? (Indicate the effect of each varlance
by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e.
zero varlance.).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c0242a7-4615-4022-be25-74bf8628f39b%2F78f4ff42-c98e-4809-af35-650df04e0fac%2Fzmiezcp.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Foundational [LO10-1, LO10-2, LO10-3]
[The following information applies to the questions displayed below]
Preble Company manufactures one product. Its varlable manufacturing overhead is
applied to production based on direct labor-hours and its standard cost card per unit Is
as follows:
Direct materlals: 5 pounds at $8.00 per
pound
40.00
28.00
Direct labor:2 hours at $14 per hour
10.00
Varlable overhead: 2 hours at $5 per hour
78.00
$
Total standard cost per unit
The planning budget for March was based on producing and selling 25,000 units.
However, during March the company actually produced and sold 30,000 units and
Incurred the following costs:
a. Purchased 160,000 pounds of raw materlals 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 varlable manufacturing overhead for the month was $280,500
Foundational 10-11
11. What Is the labor spending variance for March? (Indicate the effect of each varlance
by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e.
zero varlance.).)
Transcribed Image Text:15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of
each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no
effect (I.e., zero variance.) Do not round intermediate calculations.)
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