Sanchez May 21, 2022

# 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 materials: 4 pounds at \$8 per pound\$ 32 Direct labor: 2 hours at \$16 per hour32 Variable overhead: 2 hours at \$6 per hour12 Total standard cost per unit\$ 76 The planning budget for March was based on producing and selling 32,000 units. However, during March the company actually produced and sold 37,000 units and incurred the following costs: Purchased 160,000 pounds of raw materials at a cost of \$7.40 per pound. All of this material was used in production. Direct laborers worked 67,000 hours at a rate of \$17 per hour. Total variable manufacturing overhead for the month was \$422,100. rev: 11_20_2017_QC_CS-109672 6. If Preble had purchased 182,000 pounds of materials at \$7.40 per pound and used 160,000 pounds in production, what would be the materials quantity variance for March

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The materials quantity variance for March for Preble Company, which manufactures a product, is \$96,000 Unfavorable.

### What is a materials quantity variance?

A material quantity variance shows the difference between the actual materials consumed and the budgeted amount in production.

Computing the materials quantity variance helps manbrainly.com/question/15858152

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Grand Prairie
May 21, 2022