1. If Preble had purchased 184,000 pounds of materials at $8.50 per pound and used 180,000 pounds in production, what would be the materials price variance for March? (indicate the effect of each variance by selecting "F" or "U" or "N" for no effect.

2. What direct labor cost would be included in the company's flexible budget for March?

3. What is the direct labor efficiency variance for March? "F", "U", or "N"

4. What is the direct labor rate variance for March? "F", "U", or "N"

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 pouned Direct labor: 3 hours at $14 per42 oo s 45.00 42.00 24.00 hour Variable overhead: 3 hours at $8 per hour Total standard variable cost per 111.00 unit The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses 340,000 380, 000 S26.00 S 17.00 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 180,000 pounds of raw materials at a cost of $8.50 per pound. All of this material was used in production. b. Direct-laborers worked 69,000 hours at a rate of $15.00 per hour c. Total variable manufacturing overhead for the month was $565,110. d. Total advertising, sales salaries and commissions, and shipping expenses were $345,000, $525,000, and $255,000, respectively