Unit 6 - Chapter 9 Assignment i 13 Part 13 of 15 10 points Required information Saved [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 labor-hours and its standard cost card per unit is as follows: Direct material: 6 pounds at $9.00 per pound Direct labor: 3 hours at $15 per hour 02:28:35 Variable overhead: 3 hours at $5 per hour Total standard variable cost per unit Print $ 54.00 45.00 15.00 $ 114.00 The company also established the following cost formulas for its selling expenses: Variable Fixed Cost per Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses Month $ 260,000 $ 220,000 $ 18.00 $ 9.00 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,000 units and incurred the following costs: a. Purchased 180,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 61,000 hours at a rate of $16.00 per hour. c. Total variable manufacturing overhead for the month was $306,220. d. Total advertising, sales salaries and commissions, and shipping expenses were $268,000, $485,000, and $175,000, respectively. 13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Spending variance related to advertising
Unit 6 - Chapter 9 Assignment i 13 Part 13 of 15 10 points Required information Saved [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 labor-hours and its standard cost card per unit is as follows: Direct material: 6 pounds at $9.00 per pound Direct labor: 3 hours at $15 per hour 02:28:35 Variable overhead: 3 hours at $5 per hour Total standard variable cost per unit Print $ 54.00 45.00 15.00 $ 114.00 The company also established the following cost formulas for its selling expenses: Variable Fixed Cost per Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses Month $ 260,000 $ 220,000 $ 18.00 $ 9.00 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 25,000 units and incurred the following costs: a. Purchased 180,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production. b. Direct-laborers worked 61,000 hours at a rate of $16.00 per hour. c. Total variable manufacturing overhead for the month was $306,220. d. Total advertising, sales salaries and commissions, and shipping expenses were $268,000, $485,000, and $175,000, respectively. 13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Spending variance related to advertising
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Unit 6 - Chapter 9 Assignment i
13
Part 13 of 15
10
points
Required information
Saved
[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
labor-hours and its standard cost card per unit is as follows:
Direct material: 6 pounds at $9.00 per pound
Direct labor: 3 hours at $15 per hour
02:28:35
Variable overhead: 3 hours at $5 per hour
Total standard variable cost per unit
Print
$ 54.00
45.00
15.00
$ 114.00
The company also established the following cost formulas for its selling expenses:
Variable
Fixed Cost per Cost per
Unit Sold
Advertising
Sales salaries and commissions
Shipping expenses
Month
$ 260,000
$ 220,000
$ 18.00
$ 9.00
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 25,000 units and incurred the following costs:
a. Purchased 180,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b. Direct-laborers worked 61,000 hours at a rate of $16.00 per hour.
c. Total variable manufacturing overhead for the month was $306,220.
d. Total advertising, sales salaries and commissions, and shipping expenses were $268,000, $485,000, and $175,000,
respectively.
13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
Spending variance related to advertising](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23a6b6b5-b3ef-427d-8ec0-af6df3456718%2Ff4459d7b-8bc9-4679-95cc-bd23b01bffdc%2Fe0wpevi_processed.png&w=3840&q=75)
Transcribed Image Text:Unit 6 - Chapter 9 Assignment i
13
Part 13 of 15
10
points
Required information
Saved
[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
labor-hours and its standard cost card per unit is as follows:
Direct material: 6 pounds at $9.00 per pound
Direct labor: 3 hours at $15 per hour
02:28:35
Variable overhead: 3 hours at $5 per hour
Total standard variable cost per unit
Print
$ 54.00
45.00
15.00
$ 114.00
The company also established the following cost formulas for its selling expenses:
Variable
Fixed Cost per Cost per
Unit Sold
Advertising
Sales salaries and commissions
Shipping expenses
Month
$ 260,000
$ 220,000
$ 18.00
$ 9.00
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 25,000 units and incurred the following costs:
a. Purchased 180,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.
b. Direct-laborers worked 61,000 hours at a rate of $16.00 per hour.
c. Total variable manufacturing overhead for the month was $306,220.
d. Total advertising, sales salaries and commissions, and shipping expenses were $268,000, $485,000, and $175,000,
respectively.
13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.)
Spending variance related to advertising
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