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! Required information Foundational [LO10-1, LO10-2, LO10-3] [The following information applies 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 materlals: 5 pounds at $8.00 per pound 40.00 28.00 Direct labor:2 hours at $14 per hour 10.00 Varlable overhead: 2 hours at $5 per hour 78.00 $ Total standard cost per unit 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 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 Foundational 10-11 11. What Is the labor spending variance for March? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e. zero varlance.).) 15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance.) Do not round intermediate calculations.)

! Required information Foundational [LO10-1, LO10-2, LO10-3] [The following information applies 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 materlals: 5 pounds at $8.00 per pound 40.00 28.00 Direct labor:2 hours at $14 per hour 10.00 Varlable overhead: 2 hours at $5 per hour 78.00 $ Total standard cost per unit 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 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 Foundational 10-11 11. What Is the labor spending variance for March? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e. zero varlance.).) 15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance.) Do not round intermediate calculations.)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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! Required information Foundational [LO10-1, LO10-2, LO10-3] [The following information applies 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 materlals: 5 pounds at $8.00 per pound 40.00 28.00 Direct labor:2 hours at $14 per hour 10.00 Varlable overhead: 2 hours at $5 per hour 78.00 $ Total standard cost per unit 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 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 Foundational 10-11 11. What Is the labor spending variance for March? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e. zero varlance.).)
Transcribed Image Text:! Required information Foundational [LO10-1, LO10-2, LO10-3] [The following information applies 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 materlals: 5 pounds at $8.00 per pound 40.00 28.00 Direct labor:2 hours at $14 per hour 10.00 Varlable overhead: 2 hours at $5 per hour 78.00 $ Total standard cost per unit 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 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 Foundational 10-11 11. What Is the labor spending variance for March? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e. zero varlance.).)
15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance.) Do not round intermediate calculations.)
Transcribed Image Text:15.What Is the varlable overhead efficiency varlance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance.) Do not round intermediate calculations.)
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