[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: 5 pounds at $7 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard cost per unit $95 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: $ 35 48 12 Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. Direct laborers worked 71,000 hours at a rate of $17 per hour. Total variable manufacturing overhead for the month was $340,090. Foundational 10-2 (Algo) 2. What raw materials cost would be included in the company's flexible budget for March?
[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: 5 pounds at $7 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard cost per unit $95 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: $ 35 48 12 Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. Direct laborers worked 71,000 hours at a rate of $17 per hour. Total variable manufacturing overhead for the month was $340,090. Foundational 10-2 (Algo) 2. What raw materials cost would be included in the company's flexible budget for March?
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 variable manufacturing overhead is applied to production based on direct
labor-hours and its standard cost card per unit is as follows:
Direct materials: 5 pounds at $7 per pound
Direct labor: 3 hours at $16 per hour
Variable overhead: 3 hours at $4 per hour
12
Total standard cost per unit
$ 95
The planning budget for March was based on producing and selling 30,000 units. However, during March the company
actually produced and sold 34,000 units and incurred the following costs:
Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production.
Direct laborers worked 71,000 hours at a rate of $17 per hour.
$ 35
48
Total variable manufacturing overhead for the month was $340,090.
Foundational 10-2 (Algo)
2. What raw materials cost would be included in the company's flexible budget for March?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567e3a3e-d0fb-49e0-903a-334d72aa92be%2Fd936c988-4be0-4a76-8525-4d71cfae9d2d%2F48wjbis_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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: 5 pounds at $7 per pound
Direct labor: 3 hours at $16 per hour
Variable overhead: 3 hours at $4 per hour
12
Total standard cost per unit
$ 95
The planning budget for March was based on producing and selling 30,000 units. However, during March the company
actually produced and sold 34,000 units and incurred the following costs:
Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production.
Direct laborers worked 71,000 hours at a rate of $17 per hour.
$ 35
48
Total variable manufacturing overhead for the month was $340,090.
Foundational 10-2 (Algo)
2. What raw materials cost would be included in the company's flexible budget for March?
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