w Part 13 of Required information The Foundational 15 [LO10-1, LO10-2, LO10-3] (
ID: 2547515 • Letter: W
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w Part 13 of Required information The Foundational 15 [LO10-1, LO10-2, LO10-3] (The following information applies to the questions displayed below.) 15 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: points eBook Direct materials: 5 pounds at $9s AS las de $ 45 per pound Direct labor: 3 hours at $14 per 42 hour Variable overhead: 3 hours at $9 per hour Total standard cost per unit $114 27 Print Reference 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 $7.20 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 $612,300. Foundational 10-13 13. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing Overhead costExplanation / Answer
13)Variable manufacturing overhead cost : Actual units *standard hours per unit *variable overhead per unit
=24800 * 3 * 9
= $ 669600
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