Required Information The Foundational 15 (LOO-1, LO9-2, LO9-4, LO0-5, LO9-6) The followtng 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 aterial: 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 18.00 Total standard variable cost per unit $78.00 The company also established the following cost formulas for Its selling expenses: Fixed Cost Variable Cost per Month $ 200, e0e $ 100,000 per Unit Sold Advertising Sales salaries and commissions $ 12.ee $ 3.ee Shipping expenses 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. Foundatlonal 9-13 13. What is the spending varlance related to advertising? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance.). Input the amount as a positive value.) Spending variance related to advertising
Required Information The Foundational 15 (LOO-1, LO9-2, LO9-4, LO0-5, LO9-6) The followtng 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 aterial: 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 18.00 Total standard variable cost per unit $78.00 The company also established the following cost formulas for Its selling expenses: Fixed Cost Variable Cost per Month $ 200, e0e $ 100,000 per Unit Sold Advertising Sales salaries and commissions $ 12.ee $ 3.ee Shipping expenses 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. Foundatlonal 9-13 13. What is the spending varlance related to advertising? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance.). Input the amount as a positive value.) Spending variance related to advertising
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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