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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 unit is as follows:

Direct material: 6 pounds at $8.00 per pound	$	48.00
Direct labor: 4 hours at $16.00 per hour		64.00
Variable overhead: 4 hours at $4.00 per hour		16.00
Total standard variable cost per unit	$	128.00

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

	Fixed Cost per Month			Variable Cost per Unit Sold
Advertising	$	370,000
Sales salaries and commissions	$	100,000		$	14.00
Shipping expenses				$	5.00

The planning budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs:

a.

Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.

b.

Direct-laborers worked 82,000 hours at a rate of $17.00 per hour.

c.

Total variable manufacturing overhead for the month was $336,960.

d.

Total advertising, sales salaries and commissions, and shipping expenses were $380,000, $337,020, and $132,000, respectively.

What direct labor cost would be included in the companys flexible budget for March?

.	What is the variable overhead rate variance for March?