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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 labour hours, and its standard costs per unit are as follows: Direct materials: 6 kg at $6.00 per kg Direct labour 4 hours at $17 per hour Variable overhead: 4 hours at $4 per hour Total standard cost per unit $48.00 68.00 14.00 $112.00 The company planned to produce and sell 19.000 units in March. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a: Purchased 160,000 kg of raw materials at a cost of $7.20 per kg. All of this material was used in production. b. Direct labour: 72.000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960

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 labour hours, and its standard costs per unit are as follows: Direct materials: 6 kg at $6.00 per kg Direct labour 4 hours at $17 per hour Variable overhead: 4 hours at $4 per hour Total standard cost per unit $48.00 68.00 14.00 $112.00 The company planned to produce and sell 19.000 units in March. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a: Purchased 160,000 kg of raw materials at a cost of $7.20 per kg. All of this material was used in production. b. Direct labour: 72.000 hours at a rate of $18 per hour. c. Total variable manufacturing overhead for the month was $336,960

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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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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 labour hours, and its standard costs per unit are as follows: Direct materials: 6 kg at $6.00 per kg Direct labour 4 hours at $17 per hour Variable overhead: 4 hours at $4 per hour Total standard cost per unit $48.00 68.00 16.00 $112.00 The company planned to produce and sell 19,000 units in March. However, during March the company actually produced and sold 24,000 units and incured the following costs: a: Purchased 160,000 kg of raw materials at a cost of $7.20 per kg. All of this material was used in production. b. Direct labour: 72.000 hours at a rate of $18 per hour c. Total variable manufacturing overhead for the month was $336,960. 1. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, end "None" for no effect zero variance.).)
Transcribed Image Text: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 labour hours, and its standard costs per unit are as follows: Direct materials: 6 kg at $6.00 per kg Direct labour 4 hours at $17 per hour Variable overhead: 4 hours at $4 per hour Total standard cost per unit $48.00 68.00 16.00 $112.00 The company planned to produce and sell 19,000 units in March. However, during March the company actually produced and sold 24,000 units and incured the following costs: a: Purchased 160,000 kg of raw materials at a cost of $7.20 per kg. All of this material was used in production. b. Direct labour: 72.000 hours at a rate of $18 per hour c. Total variable manufacturing overhead for the month was $336,960. 1. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, end "None" for no effect zero variance.).)
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