Required information
The Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6]
[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 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 Cost per Unit Sold | ||||||
Advertising | $ | 200,000 | |||||
Sales salaries and commissions | $ | 100,000 | $ | 12.00 | |||
Shipping expenses | $ | 3.00 | |||||
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:
Direct-laborers worked 55,000 hours at a rate of $15.00 per hour.
Total variable manufacturing overhead for the month was $280,500.
Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively.
Foundational 9-13
13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
14. What is the spending variance related to sales salaries and commissions? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
15. What is the spending variance related to shipping expenses? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
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Required information The Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [The following information applies to the...
The Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [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 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 Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [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 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 Foundational 15 [L09-1, LO9-2, L09-4, LO9-5, L09-6) [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 material: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour 28.00 Variable overhead: 2 hours at $5 per 10.00 hour Total standard variable cost per unit $78.00 The company also...
Required information The Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] 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 material: 5 pounds at $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overheadı 2 hours at 55 per hour Total standard variable cost per unit $40.00 28.00 10.00 $78.00...
You received partial credit in the previous attempt. Required information The Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] 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 material: 5 pounds at 58.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at 55 per hour Total standard...
Required information The Foundational 15 [LO9-1, LO9-2, LO9-4, LO9-5, LO9-6] [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 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...
[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 material: 6 pounds at $8.00 per pound $ 48.00 Direct labor: 4 hours at $17 per hour 68.00 Variable overhead: 4 hours at $4 per hour 16.00 Total standard variable cost per unit $ 132.00 The company also established the following cost formulas...
* You received no credit for this question in the previous attempt Required information The Foundational 15 (LO9-1, LO9-2, L09-4, LO9-5, LO9-6] 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 ateriat 5 pounds at 58.00 per pound Direct labori 2 hours at 514 per hour Variable overhead 2 hours at...
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...
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: 8 pounds at $10.00 per pound $80.00 Direct labor: 5 hours at $13 per hour 65.00 Variable overhead: 5 hours at $8 per hour 40.00 Total standard variable cost per unit $ 185.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost...