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 labour-hours, and its standard costs per unit are as follows: Direct materials: 4 kg at $8.00 per kg Direct labour: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard cost per unit $32.00 32.00 12.00 $76.00 The company planned to produce and sell 32,000 units in March. However, during March the company actually produced and 37,000 units and incurred the following costs a. Purchased 160,000 kg of raw materials at a cost of $7.40 per kg. All of this material was used in production. b. Direct labour 67.000 hours at a rate of $17 per hour c. Total variable manufacturing overhead for the month was $422.100
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 labour-hours, and its standard costs per unit are as follows: Direct materials: 4 kg at $8.00 per kg Direct labour: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard cost per unit $32.00 32.00 12.00 $76.00 The company planned to produce and sell 32,000 units in March. However, during March the company actually produced and 37,000 units and incurred the following costs a. Purchased 160,000 kg of raw materials at a cost of $7.40 per kg. All of this material was used in production. b. Direct labour 67.000 hours at a rate of $17 per hour c. Total variable manufacturing overhead for the month was $422.100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer all with working please answer in text . answer all please please please
1. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for none effect.)
2. What is the materials quantity variance for March?
3. If Preble had purchases 182,000kg of materials at $7.40 per kg and used 160,000kg in productions, what would be the materials price variance efficiency for March?
4. If Preble had purchases 182,000kg of materials at $7.40 per kg and used 160,000kg in productions, what would be the materials quantity variance efficiency for March?
5. What is the labour rate variance for March?
6. What is the labour efficiency for March?
![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
labour-hours, and its standard costs per unit are as follows:
Direct materials: 4 kg at $8.00 per kg
Direct labour: 2 hours at $16 per hour
Variable overhead: 2 hours at $6 per hour
Total standard cost per unit
$32.00
32.00
12.00
$76.00
The company planned to produce and sell 32,000 units in March. However, during March the company actually produced
and sold 37,000 units and incurred the following costs
a. Purchased 160,000 kg of raw materials at a cost of $7.40 per kg. All of this material was used in production.
b. Direct labour: 67,000 hours at a rate of $17 per hour
c. Total variable manufacturing overhead for the month was $422,100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F024f156e-a3bf-4cff-b6b1-7bce99b7b856%2Fa77a0a20-168e-422d-baef-c24eb92919d7%2Fifyzj69_processed.png&w=3840&q=75)
Transcribed Image Text: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
labour-hours, and its standard costs per unit are as follows:
Direct materials: 4 kg at $8.00 per kg
Direct labour: 2 hours at $16 per hour
Variable overhead: 2 hours at $6 per hour
Total standard cost per unit
$32.00
32.00
12.00
$76.00
The company planned to produce and sell 32,000 units in March. However, during March the company actually produced
and sold 37,000 units and incurred the following costs
a. Purchased 160,000 kg of raw materials at a cost of $7.40 per kg. All of this material was used in production.
b. Direct labour: 67,000 hours at a rate of $17 per hour
c. Total variable manufacturing overhead for the month was $422,100
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