[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: 6 pounds at $8 per pound Direct labor: 4 hours at $13 per hour Variable overhead: 4 hours at $5 per hour Total standard cost per unit $ 48 52 20 $ 120 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,500 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 73,000 hours at a rate of $14 per hour. c. Total variable manufacturing overhead for the month was $427,050. Required: 1. What raw materials cost would be included in the company's planning budget for March? Raw material cost
[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: 6 pounds at $8 per pound Direct labor: 4 hours at $13 per hour Variable overhead: 4 hours at $5 per hour Total standard cost per unit $ 48 52 20 $ 120 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,500 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 73,000 hours at a rate of $14 per hour. c. Total variable manufacturing overhead for the month was $427,050. Required: 1. What raw materials cost would be included in the company's planning budget for March? Raw material cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: 6 pounds at $8 per pound
Direct labor: 4 hours at $13 per hour
Variable overhead: 4 hours at $5 per hour
Total standard cost per unit
$ 48
52
20
$ 120
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 25,500 units and incurred the following costs:
a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b. Direct laborers worked 73,000 hours at a rate of $14 per hour.
c. Total variable manufacturing overhead for the month was $427,050.
Required:
1. What raw materials cost would be included in the company's planning budget for March?
Raw material cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F152d606a-19d5-42cc-b16b-d3ab7c31caac%2F7f080faa-355f-47f7-8ef4-ca79a1bfec99%2Foob6hxo_processed.png&w=3840&q=75)
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 materials: 6 pounds at $8 per pound
Direct labor: 4 hours at $13 per hour
Variable overhead: 4 hours at $5 per hour
Total standard cost per unit
$ 48
52
20
$ 120
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 25,500 units and incurred the following costs:
a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b. Direct laborers worked 73,000 hours at a rate of $14 per hour.
c. Total variable manufacturing overhead for the month was $427,050.
Required:
1. What raw materials cost would be included in the company's planning budget for March?
Raw material cost
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