9 of 15 eBook 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 material: 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 variable cost per unit $ 40.00 28.00 10.00 $ 78.00 The company also established the following cost formulas for its selling expenses: Print ferences Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month Variable Cost per Unit Sold $ 200,000 $ 100,000 $ 12.00 $ 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: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $280,500. d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively. 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost
9 of 15 eBook 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 material: 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 variable cost per unit $ 40.00 28.00 10.00 $ 78.00 The company also established the following cost formulas for its selling expenses: Print ferences Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month Variable Cost per Unit Sold $ 200,000 $ 100,000 $ 12.00 $ 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: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $280,500. d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively. 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Your Question : Please introduction and correct and incorrect option explain!
![9 of 15
eBook
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 material: 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 variable cost per unit
$ 40.00
28.00
10.00
$ 78.00
The company also established the following cost formulas for its selling expenses:
Print
ferences
Advertising
Sales salaries and commissions
Shipping expenses
Fixed Cost
per Month
Variable
Cost per
Unit Sold
$ 200,000
$ 100,000
$ 12.00
$ 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:
a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour.
c. Total variable manufacturing overhead for the month was $280,500.
d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000,
respectively.
9. What variable manufacturing overhead cost would be included in the company's flexible budget for March?
Variable manufacturing overhead cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0d81949-5a68-4d1e-8e3a-a41def874d33%2F920e6862-4384-4587-b438-70b83195cc40%2Fmrbe5m4_processed.png&w=3840&q=75)
Transcribed Image Text:9 of 15
eBook
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 material: 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 variable cost per unit
$ 40.00
28.00
10.00
$ 78.00
The company also established the following cost formulas for its selling expenses:
Print
ferences
Advertising
Sales salaries and commissions
Shipping expenses
Fixed Cost
per Month
Variable
Cost per
Unit Sold
$ 200,000
$ 100,000
$ 12.00
$ 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:
a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour.
c. Total variable manufacturing overhead for the month was $280,500.
d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000,
respectively.
9. What variable manufacturing overhead cost would be included in the company's flexible budget for March?
Variable manufacturing overhead cost
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