Required information [The following information applies to the questions display

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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 Part 6 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 Total standard cost per unit $ 80 65 40 $185 points Print 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 irn 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. 6. If Preble had purchased 179,000 pounds of materials at $8.00 per pound and used 170,000 pounds in production, what would be the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values. Do not round intermediate calculations.) aterials quantity ariance

Explanation / Answer

Preble Company 6 Material quantity Variance Standard Quantity*Stnadard Price Actual quanity*Standard price =17000*8*10 =170000*10 1360000 1700000 Material quantity Variance =1360000-1700000 340000    U 7 labor cost to be included in Planning budget for March planned quanity*standard rate =15000*65 975000 8 Labor cost to be included in flexible budget for March Standard quanity*standard rate =17000*65 1105000 8 & 9 Labor rate & efficiency Variance Standard quanity*Standard rate Actual quanity*Standard rate Actual Quantity*Actual rate =17000*5*13 =64000*13 =64000*14 1105000 832000 896000 Labor efficiency Variance Labor Rate variance =1105000-832000 =832000-896000 273000 F 64000 U We appreciate the rating of our answers. Thank you

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