Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production Part 1 of 15 based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 8 pounds at $10 per pound Direct labor: 5 hours at $13 per hour Variable overhead: 5 hours at $8 per hour $ 80 65 40 $185 points Print Total standard cost per unit References The planning budget for March was based on producing and selling 15,000 units. However, during March the company actually produced and sold 17,000 units and incurred the following costs a. Purchased 170,000 pounds of raw materials at a cost of $8.00 per pound. All of this material was used in production b. Direct laborers worked 64,000 hours at a rate of $14 per hour. c. Total variable manufacturing overhead for the month was $513,920 Required: 1. What raw materials cost would be included in the company's planning budget for March? material ost

Explanation / Answer

1 Raw material cost = 15000*80= 1200000 2 Raw material cost = 17000*80= 1360000 3 Materials price variance = 170000*(8-10)= 340000 F 4 Materials quantity variance = 10*(170000-17000*8)= 340000 U 5 Materials price variance = 179000*(8-10)= 358000 F

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.