Question

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Required information The following information applies to the questions displayed below.] 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 $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 12 per hour $ 95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090 3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "Ffor favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) aterials price ariance Required information The following information applies to the questions displayed below. 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 $7 per pound $ 35 Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 per hour Total standard cost per unit 12 $ 95 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090. . What is the materials quantity variance 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.). Input all amounts as positive values.) Materials quantity variance Required information The following information applies to the questions displayed below. 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 $7 per pound Direct labor: 3 hours at $16 per hour $35 48 Variable overhead: 3 hours at $4 per hour 12 $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour c. Total variable manufacturing overhead for the month was $340,090 5. If Preble had purchased 186,000 pounds of materials at $6.80 per pound and used 175,000 pounds in production, what would be the materials price variance 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.). Input all amounts as positive values.) aterials price variance Required information The following information applies to the questions displayed below. 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 $7 per pound Direct labor: 3 hours at $16 per hour $35 48 Variable overhead: 3 hours at $4 12 per hour $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour c. Total variable manufacturing overhead for the month was $340,090 6. If Preble had purchased 186,000 pounds of materials at $6.80 per pound and used 175,000 pounds in production, what would be the materials quantity variance 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). Input all amounts as positive values.) Materials quant ariance Required information The following information applies to the questions displayed below. 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 $7 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard cost per unit 48 12 $ 95 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: Is at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090. 7. What direct labor cost would be included in the company's planning budget for March? Direct labor cost Required information [The following information applies to the questions displayed below.] 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 $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 12 per hou:r Total standard cost per unit $ 95 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090. 8. What direct labor cost would be included in the company's flexible budget for March? Direct labor cost Required information [The following information applies to the questions displayed below.] 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 $7 per pound $ 35 Direct labor: 3 hours at $16 per 48 nour Variable overhead: 3 hours at $4 12 per hour $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090 9. What is the labor rate variance 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). Input all amounts as positive values.) bor rate variance Required information The following information applies to the questions displayed below. 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 $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 per hour 12 $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour c. Total variable manufacturing overhead for the month was $340,090 10. What is the labor efficiency variance 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.). Input all amounts as positive values.) or efficiency variance Required information The following information applies to the questions displayed below 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 $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 per hour 12 $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour c. Total variable manufacturing overhead for the month was $340,090 11. What is the labor spending variance 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.). Input all amounts as positive values.) bor spending variance Required information The following information applies to the questions displayed below.] 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 $7 per pound Direct labor: 3 hours at $16 per hour $ 35 48 Variable overhead: 3 hours at $4 per hour Total standard cost per unit 12 $ 95 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090. 12. What variable manufacturing overhead cost would be included in the company's planning budget for March? riable manufacturing overhead cost Required information [The following information applies to the questions displayed below. 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 $7 per pound Direct labor: 3 hours at $16 per hour $ 35 48 Variable overhead: 3 hours at $4 12 per hour $ 95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used irn production. b. Direct laborers worked 71,000 hours at a rate of $17 per hour. C. Total variable manufacturing overhead for the month was $340,090. 3. What variable manufacturing overhead cost would be included in the company's flexible budget for March? ariable manufacturing overhead cost Required information The following information applies to the questions displayed below.] 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 $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 12 per hour $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090 14. What is the variable overhead rate variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance.). Input all amounts as positive values.) ariable overhead rate variance Required information [The following information applies to the questions displayed below.] 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 $7 per pound $ 35 Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 12 per hour $95 Total standard cost per unit The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production b. Direct laborers worked 71,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $340,090 15. What is the variable overhead efficiency variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) Variable overhead efficienc variance

Answer 1

Preble Company 3.What is the materials price variance for March? Materials price variance (Standard Price Actual Price) x Actual Quantity Actual Price 6.80 per pound, Actual Quantity 175,000 pound, Standard Price $7 Materials Price variance (7-6.80) x 175,000 $35,000 F 4.what would be the maasuantity variance for Marchi? Materials Quantity variance (Standard Quantity-Actual Quantity) x Standard Price Standard Quantity = 5 x 34,000 = 170,000 pound, Actual Quantity : 175,000 pound, Standard Price Materials Quantity variance (170,000-175,000) x 7- $35,000 $7 5.Materials price variance (Standard Price -Actual Price) x Actual Quantity Actual Price 6.80 per pound, Actual Quantity 186,000 pound, Standard Price $7 Materials Price variance (7-6.80) x186,000 $37,200 F 6.Materials Quantity variance (Standard Quantity-Actual Quantity) x Standard Price Standard Quantity 5x 34,000 170,000 pound, Actual Quantity 175,000 pound, Standard Price $7 Materials Quantity variance (170,000-175,000) x7- $35,000 7.Direct Labor cost included in flexible budget 48 x 30,000 -$1,440,000 8.Direct Labor cost included in flexible budget 48 x 34,000 $1,632,000 9.What is the direct labor rate variance for March? Direct Labor Rate Variance (Standard Rate -Actual Rate) x Actual Hours Standard Rate 16, Actual rate 17, Actual Hours 87,000 Direct Labor Rate Variance (16- 17) x 71,000 $71,000 U

10.What is the direct labor efficiency variance for March? Direct Labor efficiency variance-(Standard Hour-Actual Hour) x Standard Rate Standard Hour 34,000 x 3 102,000 Hour, Actual Hour 71,000 Hour, Standard Rate $16 Direct Labor efficiency variance (102,000 71,000) x 16 $496,000 F 11.What is the spending variance related to Labour? Actual Labour expenses $120,700 Budgeted Labour Expenses $1632,000 Spending variance related to Labour 120,7000-1632,000 $425,000 F 12.What variable manufacturing overhead cost would be included in the company's planning budget for March? Variable Manufacturing Overhead $12 per unit Budget For 30,000 units: 12 x 30,000 $360,000 13.What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable Manufacturing Overhead $12 per unit Budget For 34,000 units: 12 x 34,000 $408,000 14.What is the variable overhead rate variance for March? Variable Overhead rate variance (Standard Rate Actual Rate) x Actual Hours Standard Rate $4 Actual Rate 340,090/71,000 $4.79 Actual Hours 71,000 Variable Overhead rate variance (4-4.79) x 71,000 $56,090 U 15.What is the variable overhead efficiency variance for March? Variable Overhead Efficiency variance (Standard Hour-Actual Hour) x Standard rate Standard Hour 3 x 34,000 102,000 Actual Hour 71,000 Standard Rate -$4 Variable Overhead Efficiency variance (102,000-71,000) x 4 $124,000 F