Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required Information The Foundational 15 (Algo) [LO9-1, LO9-2, L09-4, L09-5, L09-6] [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 material: 4 pounds at $18.88 per pound Direct labor: 2 hours at $15 per hour variable overhead: 2 hours at $6 per hour Total standard variable cost per un $48.00 32.88 12.00 $84.00 The company also established the following cost formules for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Cost per Month unit sold $270,000 $240,000 $19.00 $10.00 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: Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000 $490,000, and $185,000, respectively. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March! Advertising Sales salaries and commissions Shipping expenses

Required Information The Foundational 15 (Algo) [LO9-1, LO9-2, L09-4, L09-5, L09-6] [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 material: 4 pounds at $18.88 per pound Direct labor: 2 hours at $15 per hour variable overhead: 2 hours at $6 per hour Total standard variable cost per un $48.00 32.88 12.00 $84.00 The company also established the following cost formules for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Cost per Month unit sold $270,000 $240,000 $19.00 $10.00 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: Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000 $490,000, and $185,000, respectively. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March! Advertising Sales salaries and commissions Shipping expenses

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
See similar textbooks
icon
Related questions
Question
Required Information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, L09-6] [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 material: 4 pounds at $18.88 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit $40.00 32.00 12.00 $84.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and comissions Shipping expenses Fixed Cost per Month $270,000 $ 240,000 Variable Cost per Unit Sold $19.00 $10.00 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. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour c. Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Advertising Sales salaries and commissions Shipping expenses
Transcribed Image Text:Required Information The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-4, LO9-5, L09-6] [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 material: 4 pounds at $18.88 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour Total standard variable cost per unit $40.00 32.00 12.00 $84.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and comissions Shipping expenses Fixed Cost per Month $270,000 $ 240,000 Variable Cost per Unit Sold $19.00 $10.00 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. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour c. Total variable manufacturing overhead for the month was $390,600. d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Advertising Sales salaries and commissions Shipping expenses
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS