Reference no: EM132598083
Question - 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: 4 pounds at $9.00 per pound $36.00 Direct labor: 3 hours at $15 per hour 45.00 Variable overhead: 3 hours at $6 per hour 18.00 Total standard variable cost per unit $99.00
The company also established the following cost formulas for its selling expenses:
Fixed Cost per Month Variable Cost per Unit Sold Advertising $210,000 Sales salaries and commissions $120,000 $13.00 Shipping expenses $4.00
The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs:
Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
Direct-laborers worked 56,000 hours at a rate of $16.00 per hour.
Total variable manufacturing overhead for the month was $524,720.
Total advertising, sales salaries and commissions, and shipping expenses were $220,000, $460,000, and $125,000, respectively.
Required -
What raw materials cost would be included in the company's flexible budget for March?
What is the materials quantity variance for March?
What is the materials price variance for March?
|
Project based on actual dollar cash flows
: What would be the consequences if managers of a firm evaluated a project based on its actual dollar cash flows, but used a real rate to discount the cash flows?
|
|
What amount of interest revenue that would be recognized
: Assuming that Moss Company uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2022 related to these bonds
|
|
Evaluate ethical practices of financial policy on taxes
: Evaluate ethical practices of financial policy on taxes, fees, and charges. Assess internal/external opportunities and challenges of revenue sources.
|
|
Which commercial organizations a cost is allowable
: In contrast With commercial organizations a cost is allowable if it is? Reasonable, allowable, compliant with disclosure statement, compliant with CAS/GAAP
|
|
What is the materials quantity variance for March
: Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. What is the materials quantity variance
|
|
Which is false when conduct market research
: Which is false when conduct market research? Government team members should re-evaluate government's requirement in order to align them with industry practices
|
|
How much income tax currently payable would be saved
: If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved
|
|
Which factor extent of market research vary depending on
: According to FAR Part 10, the extent of market research will vary depending on which factors? Contracting officers priority, past experience
|
|
New information impacts your career or you personally
: Identify three new concepts you did not previously have any background on and state how this new information impacts your career or you personally.
|