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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 material: 5 pounds at $1e.ee per pound Direct labor: 4 hours at $16 per hour variable overhead: 4 hours at $7 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: variable cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 220,000 $ 140,000 $ 50.00 64.00 28.00 $ 142.00 $ 14.00 $ 5.00 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 $17.00 per hour c. Total variable manufacturing overhead for the month was $653,220 d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000, respectively. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead 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: Direct material: 5 pounds at $1e.ee per pound Direct labor: 4 hours at $16 per hour variable overhead: 4 hours at $7 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: variable cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 220,000 $ 140,000 $ 50.00 64.00 28.00 $ 142.00 $ 14.00 $ 5.00 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 $17.00 per hour c. Total variable manufacturing overhead for the month was $653,220 d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000, respectively. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 material: 5 pounds at $10.ee per pound Direct labor: 4 hours at $16 per hour variable overhead: 4 hours at $7 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 220,000 $ 140,000 $ 50.00 64.00 28.00 $ 142.00 variable cost per Unit Sold $ 14.00 $ 5.00 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 $17.00 per hour c. Total variable manufacturing overhead for the month was $653,220 d Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000, respectively. 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost
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 labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $10.ee per pound Direct labor: 4 hours at $16 per hour variable overhead: 4 hours at $7 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 220,000 $ 140,000 $ 50.00 64.00 28.00 $ 142.00 variable cost per Unit Sold $ 14.00 $ 5.00 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 $17.00 per hour c. Total variable manufacturing overhead for the month was $653,220 d Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000, respectively. 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost
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