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 :

inputs

Standard quantity or hours (1)

standard price or rate (2)

standard cost (1)*(2)

Direct materials

5 pounds

$8.00 per pound

40

direct labor

2 hours

$14 per hours

28

variable overhead

2 hours

$5 per hours

$10

total standard cost per unit

78

The planning budger for march was based on producing and selling 25000 units. However, during March the company actually produced and sold 30,000 units and incurred the

following costs:

a) purchased 160,00 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.

b) diret laborers worked 55,000 hours at a rate of $15.00 per hour.

c) Total variable manufacturing overhead for the month was $280,500.

1. What raw materials cost would be included in the company's planning budget for March?

	Planned level of activity (units)
	Raw materials required per unit (pounds)
	Total raw materials needed
	Cost of raw material/ pound
	Cost of raw material in Planning Budget