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

2. What is the spending variance related to advertising? "F", "U", or "N"

3. What is the spending variance related to sales salaries and commissions? "F", "U", or "N"

4. What is the spending variance related to shipping expenses? "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 pound bousct labor: 3 hours at S14 pen 42.00 Variable overhead: 3 hours at $8 per hour Total standard variable cost per unit 24.00 5111.00 The company also established the following cost formulas for its selling expenses: Fixed Cost perVariable Cost per Unit sold Month 5 340, 000 Advertising sales salaries and380,000 $ 26.00 comm1ss10ns Shipping expenses $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 Prev 5 6 15 of 15 Next