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 materials: 6 pounds at $8 per pound $48

Direct Labor: 4 hours at $17 per hour $68

Variable Overhead: 4 hours at $4 per hour $16

Total Standard variable cost per unit $132

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

Fixed Cost Per month Variable cost per unit sold

advertising $370,000

sales salaries and commissions $440,000 $29.00

shipping expenses $20.00

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 72,000 hours at a rate of $18.00 per hour

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

d) Total advertising, sales salaries and commissions, and shipping expenses were $374,000, $540,000 and $285,000 respectively.

9) What variable manufacturing overhead cost would be included in the company's flexible budget for March?

10) What is the variable overhead efficiency variance for March?

11) What is the variable overhead rate variance for March?

12) What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March?

13) What is the spending variance related to advertising?

14) What is the spending variance related to sales salaries and commissions?

15) What is the spending variance related to shipping expenses?