1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
oksano4ka [1.4K]
3 years ago
14

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour

s and its standard cost card per unit is as follows:
Direct materials: 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 cost per unit $78.00

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.

Required:
a. What raw materials cost would be included in the company's planning budget for March?
b. What raw materials cost would be included in the company's flexible budget for March?
c. What is the materials price variance for March?
Business
1 answer:
Xelga [282]3 years ago
6 0

Answer:

Results are below.

Explanation:

Giving the following information:

Direct materials: 5 pounds at $8.00 per pound $40.00

The planning budget for March was based on producing and selling 25,000 units.

<u>a)</u>

<u>The material cost included in the planning budget is the standard cost multiplied for the budgeted production.</u>

<u></u>

Direct material requiered= 25,000*5= 100,000 pounds

Standard cost per pound= $5

Direct material budget= 100,000*5= $500,000

b)

<u>The raw material's flexible budget adapts to the actual production level.</u>

Direct material flexible budget= standard cost*actual material used in production

Direct material flexible budget= 5*160,000

Direct material flexible budget= $800,000

<u>c)</u>

<u>To calculate the direct material price variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5 - 7.5)*160,000

Direct material price variance= $400,000 unfavorable

You might be interested in
To create a budget: Multiple Choice From the Banking Menu, select Planning &amp; Budgets &gt; Budgets From the Company Menu, sel
klasskru [66]

Answer: From the Company Menu, select Planning & Budgeting > Set Up Budgets

Explanation:

Quickbooks is a very popular and effective accounting software that is mainly used by Small to Medium Scale Businesses to manage their Accounting affairs with its myriad of functions including on-premises and online cloud functions for ease of operations.

When setting up a new budget with Quickbooks, from the <em>Company menu</em>, click on <em>Planning and Budgeting</em> and then click on <em>Set Up Budgets</em>. After that you should click on <em>Create New Budget</em> and then continue from there.

6 0
3 years ago
Pierre left a message on Shayna’s voicemail stating, “Hey Shayna. Regarding that painting we talked about. I changed my mind and
zysi [14]

<u>The contract between Pierre and Shayna is not a valid contract due to the lack of acceptance from Shayna. </u>

Further Explanation:

Contract:

A legally enforced agreement is considered a contract. An agreement is a promise between two parties to perform tasks for each other for some consideration. When an agreement becomes legally enforced, then it is considered as a contract. So the contract is a legally enforced promise between two parties for considerations. Both parties should get consideration and have a performance obligation.

Following factors are required for the contract:

Offer: A person should offer some consideration to another person for performing any activity or in the exchange of goods.

Acceptance of offer: The other person should accept the offer made by the first person.

Valuable consideration: There should be valuable consideration for both the parties.

Mutual obligation: Parties should promise to execute their obligated activities.

The performance capacity of the parties: Parties should be capable of performing the contract.

Legally enforcement: The contracts should be legally enforced.

These are the basic elements of a contract. If any contracts lack any of the given factors, then it will not be considered as a valid contract.

The contract between Pierre and Shayna:

In the current case, Pierre makes an offer to sell the painting to Shayna. Pierre leaves a message in the voicemail of Shayna, stating that if Shayna does not contact Pierre within one hour, then Pierre would consider that the Shayna wants to purchase the painting.

It is not a valid contract as it lacks the acceptance of the offer from Shayna.

Pierre enters the contract to sell the painting without considering the acceptance of the offer by Shayna. Pierre puts a condition that if she does not receive any revert from Shayna within one hour, then she would consider that Shayna has accepted the offer. For a valid contract, the promisee should accept the offer but the condition of acceptance (revert within one hour) does not state for the acceptance of Shayna. So, it will not be considered a valid contract.

<u>Thus, the contract between Pierre and Shayna is not a valid contract due to non-acceptence. </u>

Learn more:

1. Learn more about the cash deficiency

brainly.com/question/12981857

2. Learn more about the span of control

brainly.com/question/12986822

3. Learn more about the sales budget  

brainly.com/question/12985585

Answer details:

Grade: Senior School

Subject: Business Law

Chapter: Contract Act

Keywords: Pierre, message, Shayna, voicemail, painting, mind, sell, steal, people, ASAP, hear, within an hour, not a valid contract, purchase a painting, lack of a(n), contract act, agreement, law, business law, promise, valid contract.

7 0
3 years ago
Paula owns a variety store in a tourist town. The store recently went online, and the response has been remarkable. The store’s
Nina [5.8K]

Answer:

a) Add another server to their infrastructure.

Explanation:

Cloud computing service provides for access of various private or public clouds so that the storage of the information is sorted and there is no problem in storing such data and information.

Other than storage there are other services like, security and outside programming are also provided.

But in the given instance if the server is getting loaded with the data, and it can be solved by adding another server and that will maintain the privacy and security of data.

Thus, the best option will be to install another server.

8 0
2 years ago
The balance sheet items of Kiner company as of December 31, current year, follow in random order
liberstina [14]
Retained Earnings = $86,000

Accounting Equation…Assets= Liabilities + Owners Equity

Assets (Cash, acct rec, equipment, building, land) = $421,000

Liabilities (Notes payable, accounts payable)= $260,000

Equity (capital stock) = $75,000

Liabilities + Equity= $335,000

Retained Earnings flows into equity

$421,000-$335,000= $86,000

$335,000+86,000= $421,000

So the equation balances.
6 0
3 years ago
What is one reason that more affluent individuals may experience better health?
andrew-mc [135]
They can afford top notch healthcare
3 0
3 years ago
Other questions:
  • An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve
    10·1 answer
  • According to Mintzberg, managers averaged ____ written and _____ verbal contacts per day with most of these activities lasting l
    7·1 answer
  • Mike is registering his real estate company. He has a license and all of his sales associates and broker associates have license
    9·1 answer
  • Who owns the factors of production?
    13·2 answers
  • Messing company has an agreement with a third-party credit card company, which calls for cash to be received immediately upon de
    11·1 answer
  • Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
    7·1 answer
  • Sheffield Corp. developed the following data for the current year: Beginning work in process inventory $ 216000 Direct materials
    14·1 answer
  • A construction company is looking to improve safety and efficiency at its sites.What is an example of a solution that requires t
    14·1 answer
  • The top five cities where venture capitalists are investing their money represent 10% of the global total.
    9·1 answer
  • in a computational problem for finding the highest salary of an employee in a company, what is the input?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!