Preble Company manufactures one product. Its variable manu labor-hours and its standard cost card per unit is as follows: Direct materials: 6 pounds at $8 per pound Direct labor: 4 hours at $13 per hour Variable overhead: 4 hours at $5 per hour Total standard cost per unit ring $ 48 52 20 $ 120 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,500 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 73,000 hours at a rate of $14 per hour. c. Total variable manufacturing overhead for the month was $427,050. Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be materials price variance for March? te: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero -iance.). Input all amounts as positive values. aterials price variance
Preble Company manufactures one product. Its variable manu labor-hours and its standard cost card per unit is as follows: Direct materials: 6 pounds at $8 per pound Direct labor: 4 hours at $13 per hour Variable overhead: 4 hours at $5 per hour Total standard cost per unit ring $ 48 52 20 $ 120 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,500 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct laborers worked 73,000 hours at a rate of $14 per hour. c. Total variable manufacturing overhead for the month was $427,050. Preble had purchased 188,000 pounds of materials at $7.20 per pound and used 170,000 pounds in production, what would be materials price variance for March? te: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero -iance.). Input all amounts as positive values. aterials price variance
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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