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: $ 55 Direct materials: 5 pounds at $11 per pound Direct labor: 3 hours at $12 per hour 36 Variable overhead: 3 hours at $7 per hour 21 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs a. Purchased 154,000 pounds of raw materials a cost of $9.50 per pound. All of this material was used in production. b. Direct laborers worked 63,000 hours at a rate of $13 per hour. c. Total variable manufacturing overhead for the month was $510,930. 5. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be the materials price variance 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.). Input all amounts as positive values.) Materials price variance 6. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be the materials quantity variance 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.). Input all amounts as positive values.) Materials quantity variance 7. What direct labor cost would be included in the company's planning budget for March? Direct labor cost 8. What direct labor cost would be included in the company's flexible budget for March? Direct labor cost
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: $ 55 Direct materials: 5 pounds at $11 per pound Direct labor: 3 hours at $12 per hour 36 Variable overhead: 3 hours at $7 per hour 21 Total standard cost per unit $ 112 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs a. Purchased 154,000 pounds of raw materials a cost of $9.50 per pound. All of this material was used in production. b. Direct laborers worked 63,000 hours at a rate of $13 per hour. c. Total variable manufacturing overhead for the month was $510,930. 5. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be the materials price variance 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.). Input all amounts as positive values.) Materials price variance 6. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be the materials quantity variance 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.). Input all amounts as positive values.) Materials quantity variance 7. What direct labor cost would be included in the company's planning budget for March? Direct labor cost 8. What direct labor cost would be included in the company's flexible budget for March? Direct labor cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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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: 5 pounds at $11 per pound
Direct labor: 3 hours at $12 per hour
$ 55
36
Variable overhead: 3 hours at $7 per hour
21
Total standard cost per unit
$ 112
The planning budget for March was based on producing and selling 21,000 units. However, during March the company
actually produced and sold 26,600 units and incurred the following costs:
a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production.
b. Direct laborers worked 63,000 hours at a rate of $13 per hour.
c. Total variable manufacturing overhead for the month was $510,930.
5. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be
the materials price variance 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.). Input all amounts as positive values.)
Materials price variance
4
6. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be
the materials quantity variance 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.). Input all amounts as positive values.)
Materials quantity variance
7. What direct labor cost would be included in the company's planning budget for March?
Direct labor cost
8. What direct labor cost would be included in the company's flexible budget for March?
Direct labor cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d758c30-aeb5-4450-971e-b3123bb20140%2Fd168967f-dd0c-41a5-8c70-f0aeb29002d5%2Fbum4t4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:0
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: 5 pounds at $11 per pound
Direct labor: 3 hours at $12 per hour
$ 55
36
Variable overhead: 3 hours at $7 per hour
21
Total standard cost per unit
$ 112
The planning budget for March was based on producing and selling 21,000 units. However, during March the company
actually produced and sold 26,600 units and incurred the following costs:
a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production.
b. Direct laborers worked 63,000 hours at a rate of $13 per hour.
c. Total variable manufacturing overhead for the month was $510,930.
5. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be
the materials price variance 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.). Input all amounts as positive values.)
Materials price variance
4
6. If Preble had purchased 178,000 pounds of materials at $9.50 per pound and used 154,000 pounds in production, what would be
the materials quantity variance 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.). Input all amounts as positive values.)
Materials quantity variance
7. What direct labor cost would be included in the company's planning budget for March?
Direct labor cost
8. What direct labor cost would be included in the company's flexible budget for March?
Direct labor cost
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