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Required Iformation The Foundatlonal 15 (LO9-1, LO9-2, LO9-4, LOD-5, LOD-6] [The following Information apples to the questions displayed below) Preble Company manufactures one product. Its varlable 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 Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour $40.00 28.00 1e.00 Total standard variable cost per unit $78.00 The company also established the following cost formulas for Its selling expenses: Fixed Cost per Honth $ 200, 000 $ 100,000 Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 12.00 $ 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 costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c Total varlable manufacturing overhead for the month was $280,500. d. Total advertising, sales salarles and commissions, and shipping expenses were $210,000, $455.000, and $115.000, respectively. Foundational 9-14 14. What is the spending varlance related to sales salaries and commislons? (Indicate the effect of each varlance by selecting "E" for Tavorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance.). Input the amount as a positive value.) Spending variance related to sales salaries and commissions

Required Iformation The Foundatlonal 15 (LO9-1, LO9-2, LO9-4, LOD-5, LOD-6] [The following Information apples to the questions displayed below) Preble Company manufactures one product. Its varlable 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 Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour $40.00 28.00 1e.00 Total standard variable cost per unit $78.00 The company also established the following cost formulas for Its selling expenses: Fixed Cost per Honth $ 200, 000 $ 100,000 Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 12.00 $ 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 costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c Total varlable manufacturing overhead for the month was $280,500. d. Total advertising, sales salarles and commissions, and shipping expenses were $210,000, $455.000, and $115.000, respectively. Foundational 9-14 14. What is the spending varlance related to sales salaries and commislons? (Indicate the effect of each varlance by selecting "E" for Tavorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance.). Input the amount as a positive value.) Spending variance related to sales salaries and commissions

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EB: Crafts 4 All has these costs associated with production of 12,000 units of accessory products:...
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Required Infomation The Foundatlonal 15 (LO9-1, LO9-2, LO9-4, LO9-5, LO9-0] [The following Information apples to the questlons displayed below.] Preble Company manufactures one product Its varlable manufacturing overhead Is applied to productlon based on diırect labor-hours and Its standard cost card per unit Is as follows: $40.00 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 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 Var iable Cost per Month $ 200,000 $ 100,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 12.00 $ 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 costs: a. Purchased 160,000 pounds of raw materlals at a cost of $7.50 per pound. All of this materlal was used In productlon. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total varlable manufacturing overhead for the month was $280,500. d. Total advertising, sales salarles and commisslons, and shlpping expenses were $210,000, $455,000, and $115,000, respectively. Foundatlonal 9-14 14. What Is the spending varlance related to sales salarles and commissions? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance.). Input the amount as a positive value.) Spending variance related to sales salaries and commissions
Transcribed Image Text:Required Infomation The Foundatlonal 15 (LO9-1, LO9-2, LO9-4, LO9-5, LO9-0] [The following Information apples to the questlons displayed below.] Preble Company manufactures one product Its varlable manufacturing overhead Is applied to productlon based on diırect labor-hours and Its standard cost card per unit Is as follows: $40.00 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 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 Var iable Cost per Month $ 200,000 $ 100,000 per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 12.00 $ 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 costs: a. Purchased 160,000 pounds of raw materlals at a cost of $7.50 per pound. All of this materlal was used In productlon. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total varlable manufacturing overhead for the month was $280,500. d. Total advertising, sales salarles and commisslons, and shlpping expenses were $210,000, $455,000, and $115,000, respectively. Foundatlonal 9-14 14. What Is the spending varlance related to sales salarles and commissions? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance.). Input the amount as a positive value.) Spending variance related to sales salaries and commissions
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