Preble Company-- Overhead Flexible Budget Variances
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March
Direct material: 5.00 pounds $8.00 per pound $40.00 Budgeted Units 25,000
Direct labor: 2.00 hours $14.00 per hour $28.00 Actual Units 30,000 Advertising
Variable overhead: 2.00 hours $5.00 per hour $10.00 Sales salaries and commissions
Total standard cost per unit $78.00 Purchased Materials 160,000 Shipping expenses
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)
Materials quantity Materials price
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)
Materials quantity
Materials price variance
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)
Labor efficiency variance Labor rate variance
9,10,11
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)
Variable overhead efficiency varaince Variable overhead rate variance
12 Preble Company
Flexible Budget
For the Month Ended March 31
Units sold
Expenses:
Advertising
Sales salaries and commissions
Shipping expenses
13,14,15
Preble Company
Spending variances
For the Month Ended March 31
Flexible Budget Actual results Spending variances
Units sold
Expenses:
Advertising
Sales salaries and commissions
Shipping expenses
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Solution Summary
Your tutorial is in Excel attached. Click in cells to see computations. Computations are also shown in the cell above each amount. Each question is labelled with a red box so you know which amounts map to each requirement.
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