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    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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    https://brainmass.com/business/accounting/preble-company-overhead-flexible-budget-variances-471303

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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.

    $2.19

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