| ------------ 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 $8.00 per pound | $ | 40.00 | | Direct labor: 2 hours at $14 per hour | | 28.00 | | Variable overhead: 2 hours at $5 per hour | | 10.00 | | | | | | Total standard variable cost per unit | $ | 78.00 | | | | | | | | The company also established the following cost formulas for its selling expenses: | | | Fixed Cost per Month | | Variable Cost per Unit Sold | | Advertising | $ | 200,000 | | | | | | Sales salaries and commissions | $ | 100,000 | | $ | 12.00 | | | Shipping expenses | | | | $ | 3.00 | | 1.What is the spending variance related to sales salaries and commissions?(Input the amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) 2.What is the variable overhead efficiency variance for March? (Input the amount as a positive value.Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) 3.What is the variable overhead rate variance for March? (Do not round intermediate calculations.Input the amount as a positive value.Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) | 4. Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product: | | Standard Hours | Standard Rate | Standard Cost | | 1.3 hours | $21.30/hour | $27.69 | | The total factory wages for June were $558,080, 90 percent of which were for direct labor. The company manufactured 18,000 units of product during June using 23,040 direct labor hours.The direct labor efficiency variance for June is: | 5. Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the direct labor costs of one unit of product: | | Standard Hours | Standard Rate | Standard Cost | | 1.3 hours | $22.10/hour | $28.73 | | The total factory wages for June were $940,160, 80 percent of which were for direct labor. The company manufactured 26,000 units of product during June using 33,280 direct labor hours. The direct labor rate variance for June is: (Do not round intermediate calculations.) | | | 6.Fausto Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standard for the materials costs of one unit of product: | | Standard Quantity | Standard Price | Standard Cost | | 6.0 pounds | $7.70/pound | $46.20 | | During June, the company purchased 172,000 pounds of direct material at a total cost of $1,341,600. The company manufactured 32,000 units of product during June using 193,280 pounds of direct materials. The direct material quantity variance for June is: | |
