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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02bab8e4-70fd-4d88-9504-f82fc904c572%2F5b2211e2-cfc5-4ab7-ac8a-39d9675a69b8%2Fvehg4up_processed.jpeg&w=3840&q=75)
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F02bab8e4-70fd-4d88-9504-f82fc904c572%2F5b2211e2-cfc5-4ab7-ac8a-39d9675a69b8%2Fdsy7ew_processed.jpeg&w=3840&q=75)
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education