60.1K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows: The company planned to produce and sell 26,000 units in March. However, during March the company actually produced and sold 31,000 units and incurred the following costs: a. Purchased 155,000kg of raw materials at a cost of $7.20 per kg. All of this material was used in production. b. Direct labour: 56,000 hours at a rate of $16 per hour. c. Total variable manufacturing overhead for the month was $524,720. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting " F " for favorable, " U " for favorable, and "None" for no effect (i.e., zero variance.).) Required information [The following information applies to the questions displayed below] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows: The company planned to produce and sell 26,000 units in March. However, during March the company actually produced and sold 31,000 units and incurred the following costs: a. Purchased 155,000kg of raw materials at a cost of $7.20 per kg. All of this material was used in production. b. Direct labour: 56,000 hours at a rate of $16 per hour. c. Total variable manufacturing overhead for the month was $524,720. . If Preble had purchased 171,000kg of materials at $7.20 per kg and used 155,000kg in production, what would be the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, " U " for unfavorable, and "None" for offect (i.e., zero variance.). Do not round intermediate calculations.)

Answer & Explanation Solved by verified expert

See Answer