GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
8th Edition
ISBN: 9781260259179
Author: BREWER
Publisher: MCG
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Chapter 9, Problem 15F15
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:
15. What is the spending variance related to shipping expense?
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Jean Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor.
Direct materials: 2.5 meters @ P14 per meter
DIrect Labor: 1.6 hours @ P8 per hour P35.00 P12.80
During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows:
50,000 meters of materials were purchased at a cost of P13.80 per meter.
40,000 meters of materials were used.
25,000 direct labor hours were used at a cost of P8.60 per hour.
Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.
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…
Chapter 9 Solutions
GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
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