! Required information Saved [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: 5 pounds at $10 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at $7 per hour Total standard cost per unit $ 50 64 28 $ 142 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct laborers worked 57,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $653,220. 15. What is the variable overhead efficiency variance for March? Note: Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values. Variable overhead efficiency variance
! Required information Saved [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: 5 pounds at $10 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at $7 per hour Total standard cost per unit $ 50 64 28 $ 142 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct laborers worked 57,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $653,220. 15. What is the variable overhead efficiency variance for March? Note: Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values. Variable overhead efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vijay
![!
Required information
Saved
[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: 5 pounds at $10 per pound
Direct labor: 4 hours at $16 per hour
Variable overhead: 4 hours at $7 per hour
Total standard cost per unit
$ 50
64
28
$ 142
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 24,600 units and incurred the following costs:
a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b. Direct laborers worked 57,000 hours at a rate of $17 per hour.
c. Total variable manufacturing overhead for the month was $653,220.
15. What is the variable overhead efficiency variance for March?
Note: Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable,
"U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.
Variable overhead efficiency variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8121b568-6420-4421-a72f-d730f7dea1da%2F147b1ada-e7b9-4953-b7f5-9ae31493aa03%2Fj4p4ihh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Saved
[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: 5 pounds at $10 per pound
Direct labor: 4 hours at $16 per hour
Variable overhead: 4 hours at $7 per hour
Total standard cost per unit
$ 50
64
28
$ 142
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 24,600 units and incurred the following costs:
a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b. Direct laborers worked 57,000 hours at a rate of $17 per hour.
c. Total variable manufacturing overhead for the month was $653,220.
15. What is the variable overhead efficiency variance for March?
Note: Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable,
"U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.
Variable overhead efficiency variance
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