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: 4 pounds at $9.00 per pound $ 36.00 Direct labor: 3 hours at $16.00 per hour 48.00 Variable overhead: 3 hours at $8.00 per hour 24.00 T otal standard variable cost per unit $ 108.00 T he company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 230,000 Sales salaries and commissions $ 270,000 $ 14.00 Shipping expenses $ 4.00 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: a. Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 87,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $729,060. d. Total advertising, sales salaries and commissions, and shipping expenses were $233,000, $729,060, and $144,000, respectively.

12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Preble Company Flexible Budget For the Month Ended March 31 Units sold (q) 33,000 Expenses Advertising Sales salaries and commissions Shipping expenses Total 15 What is the spending variance related to shipping expenses? (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