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Required information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6) [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 $10.00 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 $1700 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 Foundational 9-8 (Algo) 8. What is the direct labor rate 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 the amount as a positive value.) Direct latior rate vanance

Required information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6) [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 $10.00 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 $1700 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 Foundational 9-8 (Algo) 8. What is the direct labor rate 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 the amount as a positive value.) Direct latior rate vanance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6) [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 $10.00 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 Foundational 9-8 (Algo) 8. What is the direct labor rate 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 the amount as a positive value.) Direct labor rate variance
Transcribed Image Text:Required information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6) [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 $10.00 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 Foundational 9-8 (Algo) 8. What is the direct labor rate 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 the amount as a positive value.) Direct labor rate variance
Required information The Foundational 15 (Algo) (LO9-1, LO9-2, LO9-4, LO9-5, LO9-6) [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 $10.00 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at 57 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses Variable Fixed Cost per Cost per Month Unit Sold $ 220,000 $ 14.00 Advertising Sales salaries and commissions Shipping expenses 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 $1700 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 $ 50.00 64. 28.00 $ 142.00 Foundational 9-11 (Algo) 11. What is the variable overhead rate variance for March? (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero variance) Input the amount as a positive value) fariable overhead rate variance Required information The Foundational 15 (Algo) (LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [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 $10.00 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at $7 per hour Total standard variable cost per unit Advertising Sales salaries and commissions Shipping expenses The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Fixed Cost per Month $ 50.00 64.00 28.00 $ 142.00 $ 220,000 $ 140,000 Advertising Sales salaries and commissions Shipping expenses $ 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. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March?
Transcribed Image Text:Required information The Foundational 15 (Algo) (LO9-1, LO9-2, LO9-4, LO9-5, LO9-6) [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 $10.00 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at 57 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses Variable Fixed Cost per Cost per Month Unit Sold $ 220,000 $ 14.00 Advertising Sales salaries and commissions Shipping expenses 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 $1700 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 $ 50.00 64. 28.00 $ 142.00 Foundational 9-11 (Algo) 11. What is the variable overhead rate variance for March? (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero variance) Input the amount as a positive value) fariable overhead rate variance Required information The Foundational 15 (Algo) (LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [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 $10.00 per pound Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at $7 per hour Total standard variable cost per unit Advertising Sales salaries and commissions Shipping expenses The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Fixed Cost per Month $ 50.00 64.00 28.00 $ 142.00 $ 220,000 $ 140,000 Advertising Sales salaries and commissions Shipping expenses $ 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. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March?
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