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 actually produced and sold 30,600 units and incurred the following costs:
Direct laborers worked 68,000 hours at a rate of $18 per hour.
Total variable manufacturing overhead for the month was $512,040.
Questions:
6. If Preble had purchased 183,000 pounds of materials at $9.00 per pound and used 170,000 pounds in production, what would be the materials quantity variance for March?
7. What direct labor cost would be included in the company’s planning budget for March?
8. What direct labor cost would be included in the company’s flexible budget for March?
9. What is the labor rate variance for March?
10. What is the labor efficiency variance for March?
6) Material quantity variance = (30600*5-170000)*10 = 170000 U
7) Labor in planning budget = 24000*51 = 1224000
8) Labor in flexible budget = 30600*51 = 1560600
9) Labor rate variance = (17-18)*68000 = 68000 U
10) Labor efficiency variance = (30600*3-68000)*17 = 404600 F
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...
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 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...
uring overhead is applied to pro Preble Company manufactures one product. Its variable manufacturing overhead is anal duction based on direct labor-hours and its standard cost card per unit is as follows: (1) Standard Quantity or Hours (2) Standard Price or Rate Standard Cost (1)x12 $40.00 Inputs Direct materials .................. Direct labor..................... Variable overhead................. Total standard cost per unit...... 5 pounds 2 hours 2 hours $8.00 per pound $14 per hour $5 per hour 28.00 10.00 $78.00 The planning budget...
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 $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: Direct material: 5 pounds at $10.00 per pound Direct labor: 3 hours at $17.00 per hour Variable overhead: 3 hours at $6.00 per hour $ 50.00 51.00 18.00 Total standard variable cost per unit $ 119,00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions...
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: $ 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: 4 pounds at $8 per pound $ 32 Direct labor: 2 hours at $16 per hour 32 Variable overhead: 2 hours at $6 per hour 12 Total standard cost per unit $ 76 The planning budget for March was based on producing and selling 32,000 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 $10.00 per pound$50.00Direct labor: 3 hours at $17 per hour51.00Variable overhead: 3 hours at $7 per hour21.00Total standard variable cost per unit$122.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per MonthVariable Cost per Unit SoldAdvertising$330,000Sales salaries and commissions$360,000$25.00Shipping expenses$16.00 The planning budget for March was...