1. Raw material cost included in planning budget = 25,000*$40 = $1,000,000
2. Raw material cost included in flexible budget = 30,000*$40 = $1,200,000
3. Material price variance = Actual quantity * (Standard price-Actual price)
Material price variance = 160,000 * ($8-7.5) = $80,000 Favorable
4. Material quantity variance = Standard price * (Actual quantity-Standard quantity)
Standard quantity = 30,000*5 = 150,000
Material quantity variance = $8 * (160,000-150,000) = $80,000 Unfavorable
5. Material price variance = 170,000 * ($8-7.50) = $85,000 Favorable
6. Material quantity variance = $80,000 Unfavorable
7. Direct labor cost included in planning budget = 25,000*$28 = $700,000
8. Direct labor cost included in flexible budget = 30,000*$28 = $840,000
9. Labor rate variance = Actual hours * (Standard rate-Actual rate)
Labor rate variance = 55,000 * ($14-15) = $55,000 Unfavorable
10. Labor efficiency variance = Standard rate * (Actual hours-Standard hours)
Standard hours = 30,000*2 = 60,000 hours
Labor efficiency variance = $14 * (55,000-60,000) = $70,000 Favorable
11. Labor spending variance = $55,000 U + 70,000 F = $15,000 Favorable
12. Variable manufacturing overhead included in planning budget = 25,000*$10 = $250,000
13. Variable manufacturing overhead included in flexible budget = 30,000*$10 = $300,000
14. Variable overhead rate variance = Actual hours * (Standard rate-Actual rate)
Variable overhead rate variance = 55,000 * ($5 - $280,500/55,000) = $5,500 Unfavorable
15. Variable overhead efficiency variance = Standard rate * (Actual hours-Standard hours)
Variable overhead efficiency variance = $5 * (55,000-60,000) = $25,000 Favorable
uring overhead is applied to pro Preble Company manufactures one product. Its variable manufacturing overhead is...
1 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: 2 3 4. 5 6 7 (1) (2) Standard Standard Quantity Price or Hours or Rate 5 pounds $8.00 per pound 2 hours $14 per hour 2 hours $5 per hour 8 Inputs Direct materials Direct labor Variable overhead Total standard cost per unit Standard Cost (1) (2) $40.00 28.00 10.00...
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: Direct materials: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $ 40.00 28.00 10.00 $78.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually...
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: Direct materials: 5 pounds at $10 per pound $ 50 Direct labor: 3 hours at $17 per hour 51 Variable overhead: 3 hours at $7 per hour 21 Total standard cost per unit $ 122 The planning budget for March was based on producing and selling 24,000 units. However, during March the company...
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: Direct material: 5 pounds at 58.00 per pound $40.00 Direct labor: 2 hours at $14 per hour 28.00 Variable overhead: 2 hours at 5 per hour 10.00 Total standard variable cost per unit $78.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses...
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: Direct materials: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard cost per unit $ 40.00 28.00 10.00 $78.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually...
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: Direct material: 5 pounds at $10.00 per pound $ 50.00 Direct labor: 4 hours at $16 per hour Variable overhead: 4 hours at $7 per hour 64.00 28.00 Total standard variable cost per unit $142.00 The company also established the following cost formulas for its selling expenses: Variable Fixed Cost Cost per per...
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: $ 0.00 Direct material: 5 pounds at $8.00 per pound Direct labort 3 hours at $15 per hour Variable overhead: 3 hours at 59 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses. Variable Cost per Unit Sold Advertising Sales salaries and...
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: Direct materials: 5 pounds at $10 per pound $ 50 Direct labor: 4 hours at $14 per hour 56 Variable overhead: 4 hours at $4 per hour 16 Total standard cost per unit $ 122 The planning budget for March was based on producing and selling 29,000 units. However, during March the company...
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: $ 45 42 24 Direct material: 5 pounds at $9 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $8 per hour Total standard variable cost per unit $ 111 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per...
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: Direct material: 5 pounds at $8.00 per pound $ 40.00 Direct labor: 2 hours at $14 per hour 28.00 Variable overhead: 2 hours at $5 per hour 10.00 Total standard variable cost per unit $ 78.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable...