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: 5 lbs. @ 8.00 per pound-$40
Direct Labor: 2 hours @ 14 per hour-$28
Variable Overhead: 2 hours @ 5 per hour-$10
Total Standard Variable cost per Unit- $78
The company also established the following cost formulas for its selling expenses:
Row 1 Fixed Row 2 Variable
Sales Salaries & Commission $100,000 $12.00
Shipping Expenses $3.00
The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following cost:
A. Purchased 160,000 pounds of raw materials at a cost of 7.50 per pound. All of this material was used in production.
B. Direct laborers worked 55,000 hours at a rate of 15 per hour.
C. Total variable manufacturing overhead for the month was $280,500.
D. Total advertising, salaries & commissions and shipping expenses were $210,000 $455,000 and $115,000, respectively.
1. What raw materials cost would be included in the company’s flexible budget for March?
2. What is the raw materials quantity variance for March?
3. What is the materials price variance for March?
4. If Preble had purchased 170,000 pounds of materials at 7.50 per pound and used 160,000 pounds in production, what would be the materials quantity variance for March? Indicate the effect of the variance as favorable, unfavorable or none.
5. Same as question #4 but the materials price variance. Indicate the effect.
6. What labor cost would be included in the company’s flexible budget for March?
7. What is the direct labor efficiency variance for March? Indicate the Effect as Favorable, Unfavorable, or None.
8. What is the direct labor rate variance for March? Indicate the Effect.
9. What variable manufacturing overhead cost would be included in the company’s flexible budget for March?
10. What is the variable overhead efficiency variance for March? Indicate the Effect.
11. What is the variable overhead rate variance for March? Indicate the Effect
12. What amounts of advertising, sales salaries and commissions and shipping expenses would be included in the company’s flexible budget for March? (Units Sold 30,000)
13. What is the spending variance related to advertising? Indicate the effect.
14. What is the spending variance related to sales salaries and commissions? Indicate the Effect.
15. What is the spending variance related to shipping expenses? Indicate the Effect
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.