Accounting

Instructions:-

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:
(Table in Excel File)
The company also established the following cost formulas for its selling expenses:
(Next Table in Excel File)

The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs:

a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.

b. Direct- laborers worked 55,000 hours at a rate of $15.00 per hour.

c. Total variable manufacturing overhead for the month was $280,500.

d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively.

Questions:
(Answers need to go in excel template)
1. What raw materials cost would be included in the company’s flexible budget for March?

2. What is the materials quantity variance for March?

3. What is the materials price variance for March?

4. If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,000 pounds in production, what would be the materials quantity variance for March?

5. If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,000 pounds in production, what would be the materials price variance for March?

6. What direct labor cost would be included in the company’s flexible budget for March?

7. What is the direct labor efficiency variance for March?

 8.What is the direct labor rate variance for March?

9. What variable manufacturing overhead cost would be included in the company’s flexible budget for March?

10. What is the variable overhead efficiency variance for March?

11. What is the variable overhead rate variance for March?

12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company’s flexible budget for March?

13. What is the spending variance related to advertising?

14. What is the spending variance related to sales salaries and commissions?

15. What is the spending variance related to shipping expenses?
March
Direct material:     5.00     pounds     $8.00     per pound     $40.00         Budgeted     Units     25,000

March
Direct labor:     2.00     hours     $14.00     per hour     $28.00         Actual    Units     30,000     Advertising

$210,000
Variable overhead:     2.00     hours     $5.00     per hour     $10.00                     Sales salaries and

commissions             $455,000
Total standard cost per unit                     $78.00         Purchased Materials         160,000

Shipping expenses             $115,000
Cost Materials per pound         $7.50
Fixed cost per month    Variable cost per unit sold

Advertising             $200,000                 Direct labor-hours worked        55,000

Sales salaries and commissions             $100,000      $12.00             Cost per hour         $15.00

Shipping expenses                 $3.00

Total Variable manufacturing          $280,500
1,2 3                            overhead
Standard Quantity Allowed for Actual Output, at Standard Price        Actual Quantity of Input, at Standard Price           Actual

Quantity of Input, at Actual Price
(SQ X SP)                                      (AQ X SP)                           (AQ X AP)
Actual units times
Direct materials times        Purchased materials        Purchased materials

Per lbs                                      Per lb                                     Actual cost/lb

Materials quantity        Materials price

Unfavorable

Spending variance

4,5

Standard Quantity Allowed for Actual Output, at Standard Price        Actual Quantity of Input, at Standard Price           Actual

Quantity of Input, at Actual Price
(SQ X SP)                                     (AQ X SP)                            (AQ X AP)
Actual units times
Direct materials times        Purchased materials        Purchased materials

Per lbs                                             Per lb                                Actual cost/lb

Materials quantity        Materials price variance

Actual material
Unfavorable        Per lb standard

Less actual.
Favorable

6,7,8

Standard Hours Allowed for Actual Output, at Standard Rate        Actual Hours of Input, at Standard Rate                                                            Actual

Hours of Input, at Actual Rate
(SH X SR)                                  (AH X SR)         (AH X AR)
Actual units        Dir labor hrs worked           Dir labor hrs worked

Direct labor hours         Direct labor/hr         Cost per hour-actual

Direct labor/hr

Labor efficiency variance               Labor rate variance

        Favorable                                    Unfavorable

9,10,11 (Accounting)

Standard Hours Allowed for Actual Output, at Standard Rate        Actual Hours of Input, at Standard Rate                                                            Actual

Hours of Input, at Actual Rate
(SH X SR)                      (AH X SR)                             (AH X AR)
Actual output        Actual hrs of input        Total Variable manufacturing

Standard Rate          Var OH/hour                  overhead

Variable overhead efficiency variance        Variable overhead rate variance

$-            $-
$-            $-
Favorable     $-       Unfavorable     $-

12        Preble Company
Flexible Budget
For the Month Ended March 31

Units sold
Expenses:
Advertising
Sales salaries and commissions
Actual units
Var cost per unit sold
+Fixed cost/month
Shipping expenses
Var cost for shipping
Actual units

13,14,15
Preble Company
Spending variances
For the Month Ended March 31

Flexible Budget    Actual results    Spending variances
Units sold
Expenses:
Advertising                                                       Unfavorable
Sales salaries and commissions                    Favorable
Shipping expenses                                            Unfavorable

Accounting

Accounting Assignment HELP. ORDER NOW!!