If someone could help me with these last questions on my managerial accounting h
ID: 2469603 • Letter: I
Question
If someone could help me with these last questions on my managerial accounting homework I would really appreciate it :) I can't seem to get them right for some reason.
The following information applies to the questions displayed below. 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 materials: 4 pounds at $10 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour $ 40 32 12 Total standard cost per unit $ 84 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production 30000 pounds of b. Direct laborers worked 62,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $390,600.Explanation / Answer
Answer 4. Material Quantity Variance = (Standard Quantity - Actual Quantity) Standard Price
= {(34500*4 pounds) - 150000} * $10
= $120000 U
Answer 5. Material Price variance = (standard Price - Actual Price) * Actual Quantity purchased
= (10 - 9.20) * 177000
= $141600 F
Answer 6. Material quantity variance = (Standard Quantity - Actual Quantity) * Standard Price
= {(34500*4 pounds) - 150000}* $ 9.20
= $110400 U
Answer 11. Labor Spending Variance = (Standard price per hr - Actual Price per hr) * Actual hrs paid
= (16-17) * 62000 Hrs
= $62000 U
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