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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor - hours and its standard cost card per

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 material: 5 pounds at $9.00 per pound $ 45.00
Direct labor: 3 hours at $14 per hour 42.00
Variable overhead: 3 hours at $9 per hour 27.00
Total standard variable cost per unit $ 114.00
The company also established the following cost formulas for its selling expenses:
Fixed Cost per Month Variable Cost per Unit Sold
Advertising $ 300,000
Sales salaries and commissions $ 300,000 $ 22.00
Shipping expenses $ 13.00
The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:
Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
Direct-laborers worked 65,000 hours at a rate of $15.00 per hour.
Total variable manufacturing overhead for the month was $612,300.
Total advertising, sales salaries and commissions, and shipping expenses were $303,000, $505,000, and $215,000, respectively.
5. If Preble had purchased 180,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials price variance for March?

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