W L4Ux portal Power Bill in Linkedlnoffice emailOrders- WriteMyPap Capital One I
ID: 2522818 • Letter: W
Question
W L4Ux portal Power Bill in Linkedlnoffice emailOrders- WriteMyPap Capital One IThe following information applies to the questions displayed below Preble Company manufactures one product. Its vaniable 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 $10.00 per pound Direct labor: 2 hours at $13.00 per hour $50.00 Varlable overhead 2 hours at $8.00 per hour 26.00 16.00 Total standard variable cost per unit $ 92.00 The company also established the following cost formulas for its seling expenses Fixed Cost per Month $400.000 130,000 Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses 3.00 The planning budget for March was bosed on producing and selling 32.000 units. However, during March the company octually produced and sold 37.600 units and incurred the following costs a Purchased 200,000 pounds of row materials ot a cost of $9.40 per pound All of this material was used in production b. Direct-iaborers worked 65.000 hours at a rate of $14 00 per hour c Total variable monufacturing overhead for the month was $525.000 a Total advertising, sales salories and commissions, and shipping expenses were $416.000, 5525,200 and 5135.000, respectivelyExplanation / Answer
3) Material price variance = (Standard price-actual price)Actual quantity
= (10-9.40)*200000
Material price variance = 120000 F
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