[The following Information applies to the questions displayed below] Preble Company manufactures one product ts varlable manufacturing overhead is appled to production based on direct labor-hours and ts standard cost card per unit is as follows: Direct material: 5 pounds at $8.8e per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at SS per hour $40. 00 28.00 10.00 $78.00 Total standacd varfable cost per unit The company also established the following cost formulas for ns selling expenses: Variable Cost per Unit Sold Fixed Cost Advertising Sales salarles and connissions Shipping expenises per Month $ 200,000 $ 100,eee $ 12.00 S 3.00 The planning budget for March was based on producing and selling 25.000 units However, during March the company actually produced and sold 30,000 units and Incurred the following costs: a Purchased 160,000 pounds of raw materials at a cost of $750 per pound. All of this material was Used in production. b. Direct-laborers worked 55.000 hours at a rate of $15.00 per hour. c. Total varlable manufacturing overhead for the month wat $280,500 d. Total advertistng, sales salarles and commissions, and shipping expenses were $210.000, $455,000, and S115.000. respectively. Foundational 9-12 12 What amounts of advertising, sales salarles and commissions, and shipping expenses would be Included in the company's flextble budget for March? Advenising Sales salanes and commissions Shipping expenses
[The following Information applies to the questions displayed below] Preble Company manufactures one product ts varlable manufacturing overhead is appled to production based on direct labor-hours and ts standard cost card per unit is as follows: Direct material: 5 pounds at $8.8e per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at SS per hour $40. 00 28.00 10.00 $78.00 Total standacd varfable cost per unit The company also established the following cost formulas for ns selling expenses: Variable Cost per Unit Sold Fixed Cost Advertising Sales salarles and connissions Shipping expenises per Month $ 200,000 $ 100,eee $ 12.00 S 3.00 The planning budget for March was based on producing and selling 25.000 units However, during March the company actually produced and sold 30,000 units and Incurred the following costs: a Purchased 160,000 pounds of raw materials at a cost of $750 per pound. All of this material was Used in production. b. Direct-laborers worked 55.000 hours at a rate of $15.00 per hour. c. Total varlable manufacturing overhead for the month wat $280,500 d. Total advertistng, sales salarles and commissions, and shipping expenses were $210.000, $455,000, and S115.000. respectively. Foundational 9-12 12 What amounts of advertising, sales salarles and commissions, and shipping expenses would be Included in the company's flextble budget for March? Advenising Sales salanes and commissions Shipping expenses
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following Information applies to the questions displayed below.]
Preble Company manufactures one product Its varlable manufacturing overhead Is applled to production based on direca
labor-hours and Its standard cost card per unit is as follows:
Direct material: 5 pounds at $8.00 per pound
Direct labor: 2 hours at $14 per hour
Variable overhead: 2 hours at $5 per hour
Tetal. standard varfable cost per unit
$40.00
28.00
10.00
$78.00
The company also established the following cost formulas for ts selling expenses:
Variable CosE
per Unit Sold
Fixed Cost
per Month
Advertising
Sales salaries and connissions
Shipping expenses
$ 100, 0ee
$ 12.00
3. 3.0
The planning budget for March was based on producing and selling 25,000 units However, during March the company
actually produced and sold 30,000 units and Incurred the following costs:
a. Purchased 160,000 pounds of raw materlals at a cost of $7.50 per pound. All of this materlal was used in production.
b. Direct-laborers worked 55.000 hours at a rate of $15.00 per hour.
c. Total varlable manufacturing overhead for the month was $280,500
d. Total advertising, sales salarles and commisslons, and shipping expenses were $210.000, $455.000, and S115,000
respectively
Foundetionel 9-12
12 What amounts of advertising, sales salarles and commissions, and shipping expenses would be included in the company's flexible
budget for Mardh?
Advenising
Sales salares and commissions
Shipping expenses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b584b46-60b7-4976-9b0d-60d7ece40ffb%2F84200c2d-b432-4f0b-96f9-484d7e46a33e%2F07hdvu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following Information applies to the questions displayed below.]
Preble Company manufactures one product Its varlable manufacturing overhead Is applled to production based on direca
labor-hours and Its standard cost card per unit is as follows:
Direct material: 5 pounds at $8.00 per pound
Direct labor: 2 hours at $14 per hour
Variable overhead: 2 hours at $5 per hour
Tetal. standard varfable cost per unit
$40.00
28.00
10.00
$78.00
The company also established the following cost formulas for ts selling expenses:
Variable CosE
per Unit Sold
Fixed Cost
per Month
Advertising
Sales salaries and connissions
Shipping expenses
$ 100, 0ee
$ 12.00
3. 3.0
The planning budget for March was based on producing and selling 25,000 units However, during March the company
actually produced and sold 30,000 units and Incurred the following costs:
a. Purchased 160,000 pounds of raw materlals at a cost of $7.50 per pound. All of this materlal was used in production.
b. Direct-laborers worked 55.000 hours at a rate of $15.00 per hour.
c. Total varlable manufacturing overhead for the month was $280,500
d. Total advertising, sales salarles and commisslons, and shipping expenses were $210.000, $455.000, and S115,000
respectively
Foundetionel 9-12
12 What amounts of advertising, sales salarles and commissions, and shipping expenses would be included in the company's flexible
budget for Mardh?
Advenising
Sales salares and commissions
Shipping expenses
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