Preble Company manufactures one product. Its varlable manufacturing overhead is appled 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 Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour $40.00 28.00 10.00 $78.00 Total standard variable cost per unit The company also established the following cost formulas for Its selling expenses: Fixed Cost per Month $ 200, 000 $ 100,000 Varlable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 12.ee $3.00 he planning budget for March was based on producing and selling 25,000 units. However, during March the company ctually produced and sold 30,000 units and Incurred the following costs: Purchased 160,000 pounds of raw matertals at a cost of $7.50 per pound. All of this material was used in production. Diroct-Jaborors worked 55.000 houre at a rato of S15.00 per hour

Preble Company manufactures one product. Its varlable manufacturing overhead is appled 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 Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour $40.00 28.00 10.00 $78.00 Total standard variable cost per unit The company also established the following cost formulas for Its selling expenses: Fixed Cost per Month $ 200, 000 $ 100,000 Varlable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 12.ee $3.00 he planning budget for March was based on producing and selling 25,000 units. However, during March the company ctually produced and sold 30,000 units and Incurred the following costs: Purchased 160,000 pounds of raw matertals at a cost of $7.50 per pound. All of this material was used in production. Diroct-Jaborors worked 55.000 houre at a rato of S15.00 per hour

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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