What amounts of advertising sales salaries and commissions

Assignment Help Accounting Basics

Reference no: EM13588008

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 $8.00 per pound	$	40.00
Direct labor: 2 hours at $14 per hour		28.00
Variable overhead: 2 hours at $5 per hour		10.00

Total standard variable cost per unit	$	78.00

The company also established the following cost formulas for its selling expenses:

	Fixed Cost per Month		Variable Cost per Unit Sold
Advertising	$	200,000
Sales salaries and commissions	$	100,000	$	12.00
Shipping expenses			$	3.00

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.

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

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

3. What is the overhead rate variance for March?

5. What amounts of advertising, sales salaries and commissions, and shipping expenses wpould be included in the company's flexible budget for March?

5. What is the spending variance related to advertising?

6, What is the spending variance related to sales salaries and commissions?

7. What is the spending variance related to shipping expenses?

Reference no: EM13588008

Questions Cloud

The dont tread on me tire company had retained earnings at : the dont tread on me tire company had retained earnings at december 31 2013 of 200000. during 2014 the company had

How does the fifo method differ from the average costing : how does the fifo method differ from the average costing method of process costing system? provide an example of fifo

Brock company issued 112000 face value of bonds on january : brock company issued 112000 face value of bonds on january 1 2014. the bonds had a 8 percent stated rate of interest

In addition to those accounts listed on the trial balance : ken lumas started his own consulting firm lumas consulting on june 1 2014. the trial balance at june 30 is as

What amounts of advertising sales salaries and commissions : preble company manufactures one product. its variable manufacturing overhead is applied to production based on direct

If 107 ml of 110 m naoh is required to reach the : question if 10.7 ml of .110 m naoh is required to reach the equivalence point of a solution of citric acid how many ml

Describe the mix of media you would use to implement your : write 5-6 new pages in which youdescribe the mix of media you would use to implement your public relations campaign

Write three orbital designations that would be incorrect : question write three orbital designations that would be incorrect and explain why each is incorrect. for example 1p

Cyber security systems had sales of 3500 units at 75 per : cyber security systems had sales of 3500 units at 75 per unit last year. the marketing manager projects a 30 percent

User Account

All Pages