Business
Business, 09.04.2020 22:57, tiana02q

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: 5 pounds at $10.00 per pound $ 50.00
Direct labor: 3 hours at $17.00 per hour 51.00
Variable overhead: 3 hours at $6.00 per hour 18.00
Total standard variable cost per unit $119.00
The company also established the following cost formulas for its selling expenses:

Fixed Cost/Month Variable Cost/Unit Sold
Advertising $330,000
Sales salaries and commissions $130,000 $15.00
Shipping expenses $4.00

The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs:

a. Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production.
b. Direct-laborers worked 82,000 hours at a rate of $18.00 per hour.
c. Total variable manufacturing overhead for the month was $505,000.
d. Total advertising, sales salaries and commissions, and shipping expenses were $337,000, $505,120, and $128,000, respectively.

What raw materials cost would be included in the company’s flexible budget for March?

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 18:30, jessie8022
Theodore is researching computer programming he thinks that this career has a great employment outlook so he’d like to learn if it’s a career in which he would excel what to skills are important for him to have and becoming a successful computer programmer
Answers: 3
image
Business, 22.06.2019 17:30, leannhb3162
Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $
Answers: 2
image
Business, 22.06.2019 21:00, sophiateaches053
Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.
Answers: 1
image
Business, 23.06.2019 01:30, Joshuafranklindude
Lee earns $1,482 of interest in 270 days after making a deposit of $15,200. find the interest rate.
Answers: 1
Do you know the correct answer?
Preble Company manufactures one product. Its variable manufacturing overhead is applied to productio...

Questions in other subjects: