Reference no: EM13966033
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 materials:
6 pounds at $8 per pound $ 48 Direct labor:
4 hours at $17 per hour 68 Variable overhead:
4 hours at $4 per hour 16 Total standard cost per unit $ 132 The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs:
a. Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b. Direct laborers worked 72,000 hours at a rate of $18 per hour.
c. Total variable manufacturing overhead for the month was $336,960.
What direct labor cost would be included in the company's planning budget for March?
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