Preble company manufactures one product its variable

Reference no: EM13572688

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 $9 per pound	$	45
Direct labor: 3 hours at $14 per hour		42
Variable overhead: 3 hours at $9 per hour		27

Total standard variable cost per unit	$	114

The company also established the following cost formulas for its selling expenses:

	Fixed Cost per Month		Variable Cost per Unit Sold
Advertising	$	300,000
Sales salaries and commissions	$	200,000	$	12.00
Shipping expenses			$	4.00

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:

a.	Purchased 155,000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production.
b.	Direct-laborers worked 65,000 hours at a rate of $15 per hour.
c.	Total variable manufacturing overhead for the month was $612,000.
d.	Total advertising, sales salaries and commissions, and shipping expenses were $308,000, $480,000, and $106,000, respectively.

Required:

What variable manufacturing overhead cost would be included

Reference no: EM13572688

Questions Cloud

Westerville company reported the following results from : westerville company reported the following results from last years

On january 1 2013 horton inc sells a machine for 22300 the : on january 1 2013 horton inc. sells a machine for 22300. the machine was originally purchased on january 1 2011 for

What is the difference between sane and insane automatism : what is the difference between sane and insane automatism? discuss in reference tofalconers case.also what was the

Cmpute the present value of 100 cash flow for the : compute the present value of 100 cash flow for the following combinations of discout rates and timesr8 tyearsr8 t20

Preble company manufactures one product its variable : preble company manufactures one product. its variable manufacturing overhead is applied to production based on direct

Apple and phillips balance sheets for year ending : apple and phillips balance sheets for year ending 2012.comment on three difference between their balance sheets. also

Gi jane was a soldier in the iraq war her salary was 2600 : g.i. jane was a soldier in the iraq war. her salary was 2600 per month and she was in the war zone for eight months.

Management is considering closing the shoe operation : sophisticates corner sells clothing shoes and accessories at a suburban location near boston. information for the just

In the cocktail lounge at fribbes hotel a straight shot of : in the cocktail lounge at fribbes hotel a straight shot of irish whiskey is 1 12 ounces. the purchase price for 1 liter

User Account

All Pages