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.)

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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…

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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

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:...

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Henry Company has established the following standards for the costs of one unit of its product. Thestandard production overhead costs per unit are based on direct-labor hours. Calculation for standard perunit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $ 14.40 6.00 kg $ 2.40 per kg Direct Labor $ 3.00 0.40 hour $ 7.50 per hour Variable Overhead $ 4.00 0.40 hour $ 10.00 per hour Fixed Overhead* $ 4.80 0.40 hour $ 12.00 per hour Total $ 26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry…
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