Required information[The following information applies to the questions displayed below.]Preble Company manufactures one product. Its variablemanufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows:Direct material: 4 pounds at $9.00 per poundDirect labor: 3 hours at $15 per hourVariable overhead: 3 hours at $6 per hourTotal standard variable cost per unitThe company also established the following cost formulas for itsselling expenses:AdvertisingSales salaries and commissionsShipping expenses$ 36.0045.0018.00$ 99.00Fixed Costper Month$ 210,000$ 120,000VariableCost perUnit Sold$ 13.00$ 4.00The planning budget for March was based on producing and selling26,000 units. However, during March the company actually producedand sold 31,000 units and incurred the following costs:Variable overhead rate variancea. Purchased 155,000 pounds of raw materials at a cost of $7.20 perpound. All of this material was used in production.b. Direct-laborers worked 56,000 hours at a rate of $16.00 per hour.c. Total variable manufacturing overhead for the month was$524,720.d. Total advertising, sales salaries and commissions, and shippingexpenses were $220,000, $460,000, and $125,000, respectively.11. What is the variable overhead rate variance for March? (Indicate the effect of eacvariance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance.). Input the amount as a positive value.)

Name: Required information[The following information applies to the questio
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Required information[The following information applies to the questions displayed below.]Preble Company manufactures one product. Its variablemanufacturing overhead is applied to production based on directlabor-hours and its standard cost card per u

Variable overhead rate variance is based on standard rate of Variable overhead and Actual Rate of…

Answered: b. Direct-laborers worked 56,000 hours…

Business

Accounting

b. Direct-laborers worked 56,000 hours at a rate of $16.00 per hour. c. Total variable manufacturing overhead for the month was $524,720. nmissions and shipping

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

QUESTION: AT THE BEGINNING OF THE YEAR, RANGLE COMPANY EXPECTED TO INCUR $54,000 OF OVERHEAD COSTS IN PRODUCING 6,000 UNITS OF PRODUCT. THE DIRECT MATERIAL COST IS $20 PER UNIT OF PRODUCT. DIRECT LABOR COST IS $30 PER UNIT. DURING JANUARY, 600 UNITS WERE PRODUCED. REQUIRED: THE TOTAL COST OF THE UNITS MADE IN JANUARY WAS:
Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual labor hours were 22,000. The amount of manufacturing overhead applied to production would be: O $210,000. $220,000. $215,000. $200,000.
Assume (1) estimated fixed manufacturing overhead for the coming period of $207,000, (2) estimated variable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the period of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: (Round your intermediate value of "Predetermined overhead rate" to two decimal places.) Multiple Choice $317,000. $311,040. $325,926. $322,564.
how much is net income for december
XYZ Company has the following balances for the current month: Direct materials used OMR 24,000 Direct labor OMR 36,800 Sales salaries OMR 19,200 Indirect labor OMR 4,800 Production manager's salary OMR 9,600 Marketing costs OMR 14,400 Factory lease OMR 6,400 What is total manufacturing cost? a. OMR 81,600 b. OMR 86,400 C. OMR 89,600 d. OMR 96,000 e. None of the given answer.
Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $76,000 and the total of the credits to the account was $66,000. Which of the following statements is true?
The following costs were incurred during the month of June: Direct Materials $34,000 Direct Labor $72,000 Variable Manufacturing Overhead $3,000 Fixed Manufacturing Overhead $16,000 Selling Expenses $13,000 Administrative Expenses $16,000 What were the total inventoriable costs for June?
The manufacturing cost of XYZ Company during October includes prime costs of OMR85,000. The manufacturing overhead is 20% of the month's total manufacturing costs. If beginning work in process was OMR25,000 and ending work in process is OMR39,000, the cost of goods manufactured is:
Jeniffer Fly Shop applies overhead at a rate of $5.50 per direct labor hour. At the end of the month, the company had accumulated 7,000 direct labor hours and 7,800 machine hours. The company incurred $37,500 in actual manufacturing overhead. Manufacturing overhead was: a. $3,000 overapplied. Ob. $1,000 overapplied. Oc. $3,000 underapplied. Od. $1,000 underapplied.
Direct materials used in production totaled $280,000. Direct labor was $375,000, and $180,000 of manufacturing overhead was added to production for the month. What were total manufacturing costs incurred for the month?
Walton Company incurred manufacturing overhead cost for the year as follows. Direct materials $ 39.00 /unit Direct labor $ 27.40 /unit Manufacturing overhead Variable $ 11.10 /unit Fixed ($18.80/unit for 1,900 units) $ 35,720 Variable selling and administrative expenses $ 10,360 Fixed selling and administrative expenses $ 15,500 The company produced 1,900 units and sold 1,400 of them at $182.00 per unit. Assume that the production manager is paid a 1 percent bonus based on the company’s net income. Required Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Determine the manager’s bonus using each approach. Which approach would you recommend for internal reporting?
1A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours. What is the predetermined overhead rate, and how much was applied during the year?