Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
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 pounds at $8.00 per pound
$
40.00
Direct labor: 2 hours at $14 per hour
28.00
Variable overhead: 2 hours at $5 per hour
10.00
Total standard variable cost per unit
78.00
The company also established the following cost formulas for its selling expenses:
Fixed Cost per Month
Variable Cost per Unit Sold
Advertising
200,000
Sales salaries and commissions
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 costs:
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 $15.00 per hour.
c.
Total variable manufacturing overhead for the month was $280,500.
d.
Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively.
Required:
9. What variable manufacturing overhead cost would be included in the company?s flexible budget for March?
Variable manufacturing overhead cost
10. What is the variable overhead efficiency variance for March? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Variable overhead efficiency variance
11. What is the variable overhead rate variance for March? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Variable overhead rate variance
12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company?s flexible budget for March?
Preble Company Flexible Budget For the Month Ended March 31
Units sold (q)
30,000
Expenses:
13. What is the spending variance related to advertising? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Spending variance $
14. What is the spending variance related to sales salaries and commissions? (Input the amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
15. What is the spending variance related to shipping expenses? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)
Clover Company filed a petition for reorganization under the bankruptcy statutes. The court approved the plan on September 1, 2012, including the provisions
Identify the stakeholders involved in situation and what are the main ethical issues involved - what actions are available to Sharon to resolve the dilemma she faces - What actions are available to Sharon for dilemma she faces?
Last year, Ragan had an EPS of $5.35 and paid a dividend to Carrington and Genevieve of $320,000 each. The company also had a return on equity of 21 percent. Larissa tells Dan that a required return for Ragan of 18 percent is appropriate. Assuming th..
rondello corporation manufactures a single product. the standard cost per unit of product is shown below.direct
Be sure to include an evaluation of the Footnote disclosures regarding Lucent's inventories in your examination. Does explanation for the earnings shortfall provided by Lucent's managers make sense in light of your analysis?
In 2014, Alice lived in Connecticut, Maine and Wyoming. While living in Wyoming, she also worked in Texas. When she files her ta return in April 2015, she is living in Florida. To which IRS center does She have to send her 2014 tax return?
Explain why using activity-based costing to justify not allocating corporate funds to social or environmental causes is an ethical issue
Calculate the total amount of dividends declared by March for 20X7 and calculate March's profit for 20X8.
Standard costing would most often require which type of performance evaluation?
disposal of fixed assetequipment acquired on january 4 2009 at a cost of 425000 has an estimated useful life of nine
Describe a cash management strategy that might require a minimum, as well as a maximum, cash balance of $10,000 at the end of each month.
“Earnings per share” (EPS) is the most featured, single financial statistic about modern corporations. Daily published quotations of stock prices have recently been expanded to include for many securities a “times earnings” figure that is based on EP..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd