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:Direct materials: 5 pounds at $11 per pound$ 55Direct labor: 3 hours at $12 per hour36Variable overhead: 3 hours at $7 per hour21Total standard cost per unit$ 112The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs:Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production.Direct laborers worked 63,000 hours at a rate of $13 per hour.Total variable manufacturing overhead for the month was $510,930.8. What direct labor cost would be included in the company’s flexible budget for March? 2. Sharp Company manufactures a product with the following standards: Standard Quantity or HoursStandard Price or RateStandard CostDirect materials3feet$ 5per foot$ 15Direct labor?question markhours?question markper hour?question markDuring March, the company purchased direct materials for $52,740, all of which were used in the production of 2,750 units. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $40,500. The following variances have been computed for the month:Materials quantity variance$ 2,700ULabor spending variance$ 3,100ULabor efficiency variance$ 850URequired:For direct materials:Compute the actual cost per foot of materials for March.Compute the price variance and the spending variance.For direct labor:Compute the standard direct labor rate per hour.Compute the standard hours allowed for the month’s production.Compute the standard hours allowed per unit of product.********please all the requirement questions stated please.

The variance is the difference between the standard and actual cost production data. The flexible…

Answered: Preble Company manufactures one…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...

See similar textbooks

Related questions

Question

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:

Direct materials: 5 pounds at $11 per pound	$ 55
Direct labor: 3 hours at $12 per hour	36
Variable overhead: 3 hours at $7 per hour	21
Total standard cost per unit	$ 112

The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs:

Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production.
Direct laborers worked 63,000 hours at a rate of $13 per hour.
Total variable manufacturing overhead for the month was $510,930.

8. What direct labor cost would be included in the company’s flexible budget for March?

Sharp Company manufactures a product with the following standards:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	3	feet	$ 5	per foot	$ 15
Direct labor	?question mark	hours	?question mark	per hour	?question mark

During March, the company purchased direct materials for $52,740, all of which were used in the production of 2,750 units. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $40,500. The following variances have been computed for the month:

Materials quantity variance	$ 2,700	U
Labor spending variance	$ 3,100	U
Labor efficiency variance	$ 850	U

Required:

For direct materials:
1. Compute the actual cost per foot of materials for March.
2. Compute the price variance and the spending variance.
For direct labor:
1. Compute the standard direct labor rate per hour.
2. Compute the standard hours allowed for the month’s production.
3. Compute the standard hours allowed per unit of product.

********please all the requirement questions stated please.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Expert Solution