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

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5 Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour hours and its standard cost card per unit is as follows: Direct material: 5 pounds at 59 per pound Direct Labour: 3 hours at 514 per hour Variable overhead: 3 hours at $9 per hour Total standard variable cost per unit ts $ 45 42 27 $114 02.1922 Fixed overhead was budgeted at $605,000. Fixed overhead is applied on the basis of direct labour hours. The company also established the following cost formulas for its seiling expenses. Fixed Cost Variable Cost per Month Advertising per Unit Sold Sales salaries and commissions $300,000 $200,000 $12.00 Shipping expenses. 5 4.00 The static (e. 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: a. Purchased 155,000 pounds of raw materials at a cost of $72 per pound. All of this material was used in production, b. Direct labourers worked 65,000 hours at a rate of $15 per hour Total variable manufacturing overhead for the month was $612,000. And fixed manufacturing overhead was $600,000 d. Total advertising, sales salaries and commissions, and shipping expenses were $308,000, $480,000, and $106,000, respectively The static fie.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: a. Purchased 155,000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production b. Direct-labourers worked 65,000 hours at a rate of $15 per hour. c Total variable manufacturing overhead for the month was $612,000. And fixed manufacturing overhead was $600,000 d. Total advertising, sales salaries and commissions, and shipping expenses were $308,000, $480,000, and $106,000, respectively. Required: If Preble had purchased 180.000 pounds of materials at $72 per pound and used 155,000 pounds in production, what would be the materials quantity 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 favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.).) Materials quantity variance

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