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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: $40.00 Direct material: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost, per Unit Sold Fixed Cost per Month $ 270,000 $ 240,000 Advertising $19.00 Shipping expenses The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually 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 $1700 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. 5. If Preble had purchased 177.000 pounds of materials at $9.20 per pound and used 150.000 pounds in production, what would be the materials price variance for March? (Indlcate the effect of each varlance by selectlng "F" for favorable, "U for unfavorable, and "None" for no etfect (I.e., zero varleance.). Input the amount as a positive value.) Materials pnce variance < Prev 15 of 15 ere to search, 近 F4 F5 F7 F10 Coc-a

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: $40.00 Direct material: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost, per Unit Sold Fixed Cost per Month $ 270,000 $ 240,000 Advertising $19.00 Shipping expenses The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually 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 $1700 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. 5. If Preble had purchased 177.000 pounds of materials at $9.20 per pound and used 150.000 pounds in production, what would be the materials price variance for March? (Indlcate the effect of each varlance by selectlng "F" for favorable, "U for unfavorable, and "None" for no etfect (I.e., zero varleance.). Input the amount as a positive value.) Materials pnce variance < Prev 15 of 15 ere to search, 近 F4 F5 F7 F10 Coc-a

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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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: $40.00 Direct material: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost, per Unit Sold Fixed Cost per Month $ 270,000 $ 240,000 Advertising $19.00 Shipping expenses The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually 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 $1700 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. 5. If Preble had purchased 177.000 pounds of materials at $9.20 per pound and used 150.000 pounds in production, what would be the materials price variance for March? (Indlcate the effect of each varlance by selectlng "F" for favorable, "U for unfavorable, and "None" for no etfect (I.e., zero varleance.). Input the amount as a positive value.) Materials pnce variance < Prev 15 of 15 ere to search, 近 F4 F5 F7 F10 Coc-a
Transcribed Image Text: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: $40.00 Direct material: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost, per Unit Sold Fixed Cost per Month $ 270,000 $ 240,000 Advertising $19.00 Shipping expenses The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually 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 $1700 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. 5. If Preble had purchased 177.000 pounds of materials at $9.20 per pound and used 150.000 pounds in production, what would be the materials price variance for March? (Indlcate the effect of each varlance by selectlng "F" for favorable, "U for unfavorable, and "None" for no etfect (I.e., zero varleance.). Input the amount as a positive value.) Materials pnce variance < Prev 15 of 15 ere to search, 近 F4 F5 F7 F10 Coc-a
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