Homework Help is Here – Start Your Trial Now!
Business
Accounting
LL 3. 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: 4 pounds at $19.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 32.00 Total standard variable cost per unit $84.00 The company also established the following cost formulas for its selling expenses: Variable Cost Fixed Cost per Month per Unit Sold Advertising Sales salaries and commissions, Shipping expenses, $ 240,000 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. C. Total variable manufacturing overhead for the month was $390,600, d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 14. What is the spending variance related to sales salaries and commissions? (Indicete the effect of each verlence by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero verlance.). Input the amount os a positive value.) Spending variance related to sales salaries and commissions ere to search TL F4 F5 F7 F8 F11

LL 3. 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: 4 pounds at $19.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 32.00 Total standard variable cost per unit $84.00 The company also established the following cost formulas for its selling expenses: Variable Cost Fixed Cost per Month per Unit Sold Advertising Sales salaries and commissions, Shipping expenses, $ 240,000 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. C. Total variable manufacturing overhead for the month was $390,600, d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 14. What is the spending variance related to sales salaries and commissions? (Indicete the effect of each verlence by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero verlance.). Input the amount os a positive value.) Spending variance related to sales salaries and commissions ere to search TL F4 F5 F7 F8 F11

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
See similar textbooks
icon
Related questions
Question
LL 3. 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: 4 pounds at $19.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 32.00 Total standard variable cost per unit $84.00 The company also established the following cost formulas for its selling expenses: Variable Cost Fixed Cost per Month per Unit Sold Advertising Sales salaries and commissions, Shipping expenses, $ 240,000 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. C. Total variable manufacturing overhead for the month was $390,600, d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 14. What is the spending variance related to sales salaries and commissions? (Indicete the effect of each verlence by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero verlance.). Input the amount os a positive value.) Spending variance related to sales salaries and commissions <Prev 14 15 Next > ere to search TL F4 F5 F7 F8 F11
Transcribed Image Text:LL 3. 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: 4 pounds at $19.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 32.00 Total standard variable cost per unit $84.00 The company also established the following cost formulas for its selling expenses: Variable Cost Fixed Cost per Month per Unit Sold Advertising Sales salaries and commissions, Shipping expenses, $ 240,000 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. C. Total variable manufacturing overhead for the month was $390,600, d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. 14. What is the spending variance related to sales salaries and commissions? (Indicete the effect of each verlence by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero verlance.). Input the amount os a positive value.) Spending variance related to sales salaries and commissions <Prev 14 15 Next > ere to search TL F4 F5 F7 F8 F11
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS