GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
8th Edition
ISBN: 9781260259179
Author: BREWER
Publisher: MCG
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Chapter 9, Problem 12F15
Preble Company manufactures one product. Its variable manufacturing
The company also established the following cost formulas for its selling expenses: 
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:
page 42$
- Purchased 160.000 pounds of raw materials at a cost of S7.50 per pound. All of this material was used in production.
- Direct-laborers worked 55.000 hours at a rate of $15.00 per hour. Total variable manufacturing overhead for the month was S280.500.
Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115.000, respectively.
Required:
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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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: 4 pounds at $9.00 per pound
Direct labor: 3 hours at $15 per hour
Variable overhead: 3 hours at $6 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
$36.00
45.00
18.00
$99.00
$ 210,000
$ 120,000
Variable
Cost per
Unit Sold
Direct labor efficiency variance
$ 13.00
$ 4.00
The planning budget for March was based on producing and selling
26,000 units. However, during March the company actually produced
and sold 31,000 units and incurred the following costs:
a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per
pound. All of this material was used in production.
b. Direct-laborers worked 56,000 hours at a rate of $16.00 per…
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: 4 pounds at $9.00 per pound
Direct labor: 3 hours at $15 per hour
Variable overhead: 3 hours at $6 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
$36.00
45.00
18.00
$99.00
$ 210,000
$ 120,000
Variable
Cost per
Unit Sold
Materials quantity variance
$ 13.00
$ 4.00
The planning budget for March was based on producing and selling
26,000 units. However, during March the company actually produced
and sold 31,000 units and incurred the following costs:
a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per
pound. All of this material was used in production.
b. Direct-laborers worked 56,000 hours at a rate of $16.00 per…
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: 4 pounds at $9.00 per pound
Direct labor: 3 hours at $15 per hour
Variable overhead: 3 hours at $6 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
$36.00
45.00
18.00
$99.00
$ 210,000
$ 120,000
Variable manufacturing overhead cost
Variable
Cost per
Unit Sold
$ 13.00
$ 4.00
The planning budget for March was based on producing and selling
26,000 units. However, during March the company actually produced
and sold 31,000 units and incurred the following costs:
a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per
pound. All of this material was used in production.
b. Direct-laborers worked 56,000 hours at a rate of $16.00…
Chapter 9 Solutions
GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
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Ch. 9.A - Comprehensive Standard Cost Variances Flandro...Ch. 9.A - Selection of a Denominator: Overhead Analysis:...Ch. 9.B - Standard Cost Flows: Income Statement Preparation...Ch. 9.B - Standard Cost Flows: Income Statement Preparation...Ch. 9.B - Standard Cost Flows Bowen Company manufactures one...Ch. 9.B - Standard Cost Flows Hartwell Company manufactures...Ch. 9.B - Transaction Analysis; Income Statement Preparation...Ch. 9.B - Transaction Analysis; Income Statement Preparation...Ch. 9 - What is a static planning budget?Ch. 9 - What is a flexible budget and how does it differ...Ch. 9 - What are some of the possible reasons that actual...Ch. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is a revenue variance and what does it mean?Ch. 9 - What is a spending variance and what does it mean?Ch. 9 - What does a flexible budget enable that a simple...Ch. 9 - How does a flexibe budget based on the cost...Ch. 9 - Prob. 9QCh. 9 - Why are separate price and quantity variances...Ch. 9 - Who is generally responsible for the materials...Ch. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Our workers are all under labor contracts:...Ch. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Prob. 2AECh. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 2F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 4F15Ch. 9 - Prob. 5F15Ch. 9 - Prob. 6F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 8F15Ch. 9 - Prob. 9F15Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 13F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prepare a Flexible Budget Puget Sound Divers is a...Ch. 9 - Prepare a Report Shong Revenue and Spending...Ch. 9 - Prepare a Flexible Budget with More Than One Cost...Ch. 9 - Direct Materials Variances Bandar Industries...Ch. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Planning Budget Lavage Rapide is a Canadian...Ch. 9 - EXERCISE 98 Flexible Budget L091 Refer to the data...Ch. 9 - Prepare a Report Showing Revenue and Spending...Ch. 9 - Direct Labor and Variable Manufacturing Overhead...Ch. 9 - Prob. 11ECh. 9 - Working with More Than One Cost Driver The...Ch. 9 - Direct Materials and Direct Labor Variances Huron...Ch. 9 - Direct Materials Variances Refer to the data in...Ch. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Comprehensive Variance Analysis Miller Toy Company...Ch. 9 - More than One Cost Driver Milano Pizza is a small...Ch. 9 - Basic Variance Analysis: the Impact of Vanances on...Ch. 9 - Multiple Products. Materials, and Processes...Ch. 9 - Variance Analysis In a Hospital John Fleming,...Ch. 9 - Flexible Budgets and Spending Variances You have...Ch. 9 - Comprehensive Variance Analysis Marvel Parts....Ch. 9 - Direct Materials and Direct Labor Variances:...Ch. 9 - Comprehensive Variance Analysis Highland Company...
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