1.11 points

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 $10 per pound	$	50
Direct labor: 3 hours at $14 per hour		42
Variable overhead: 3 hours at $4 per hour		12
Total standard variable cost per unit	$	104

The company also established the following cost formulas for its selling expenses:

	Fixed Cost per Month			Variable Cost per Unit Sold
Advertising	$	390,000
Sales salaries and commissions	$	290,000		$	12.00
Shipping expenses				$	3.00

The planning budget for March was based on producing and selling 29,000 units. However, during March the company actually produced and sold 34,200 units and incurred the following costs:

a.	Purchased 180,000 pounds of raw materials at a cost of $9.5 per pound. All of this material was used in production.
b.	Direct-laborers worked 74,000 hours at a rate of $15 per hour.
c.	Total variable manufacturing overhead for the month was $440,200.
d.	Total advertising, sales salaries and commissions, and shipping expenses were $392,000, $690,000, and $134,000, respectively.

Required:

What is the materials price variance for March? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).)