14. What is the spending variance related to sales salaries and commissions?15. What is the spending variance related to shipping expenses? Required informationThe Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6][The following Information applies to the questions displayed below.]Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows:Direct material: 4 pounds at $10.00 per poundDirect labor: 2 hours at $16 per hourVariable overhead: 2 hours at $6 per hourTotal standard variable cost per unitThe company also established the following cost formulas for its selling expenses:VariableFixed Cost per Cost perMonthUnit SoldAdvertisingSales salaries and commissionsShipping expenses$ 40.0032.0012.00$ 84.00$ 270,000$ 240,000$ 19.00$ 10.00The planning budget for March was based on producing and selling 30,000 units. However, during March the companyactually produced and sold 34,500 units and incurred the following costs:a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production.b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour.c. Total variable manufacturing overhead for the month was $390,600.d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000,respectively.

Name: 14. What is the spending variance related to sales salaries and commis
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Description: 14. What is the spending variance related to sales salaries and commissions?15. What is the spending variance related to shipping expenses? Required informationThe Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6][The following Information a

Solution: Spending variance is the difference between flexible budget amount and actual results.…

Answered: 14. What is the spending variance…

Business

Accounting

14. What is the spending variance related to sales salaries and commissions? 15. What is the spending variance related to shipping expenses?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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1. Calea Corp. has received a request for a special order of 6,000 units of product Y69 for P13.70 each. Y69’s unit product cost is P11.50, determined as follows: Direct materials, P2.50; Direct labor, P1.90; Variable manufacturing overhead, P2.30; fixed manufacturing overhead, P4.80. Direct labor is a variable cost. The special order would have no effect on the company’s total fixed manufacturing costs. The customer would like modifications made to product Y69 that would increase variable cost by P8.10 per unit and that would require an investment of P20,000 in special molds that would have no salvage value. This special order would have no effect on the company’s other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, what would be the company’s increase or (decrease) in overall net operating income? 2. Selected information from the accounting records of Vigor Co. is as follows: Net accounts receivable at Dec. 31, 2018,…
Required information The Foundational 15 (Static) [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] Skip to question [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 material: 5 pounds at $8.00 per pound $ 40.00 Direct labor: 2 hours at $14 per hour 28.00 Variable overhead: 2 hours at $5 per hour 10.00 Total standard variable cost per unit $ 78.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 200,000 Sales salaries and commissions $ 100,000 $ 12.00 Shipping expenses $ 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…
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Younes Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as P06. Data concerning this product are given below: Per Unit Selling price $ 220 Direct materials $ 38 Direct labor $ 1 Variable manufacturing overhead $ 8 Fixed manufacturing overhead $ 16 Variable selling expense $ 4 Fixed selling and administrative expense $ 16 The above per unit data are based on annual production of 4,000 units of the component. Assume that direct labor is a variable cost.The company has received a special, one-time-only order for 400 units of component P06. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Younes has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum…
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