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 $7.00 per pound Direct labori 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00) $95.00 The company also established the following cost formulas for its selling expenses: Advertising Bales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 $420,000 Variable Cost per Unit Sold $28.00 $ 19.00. The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-1 (Algo) Required: 1. What raw materials cost would be included in the company's flexible budget for March? Raw material cost Direct material: 5 pounds at $7.00 per pound Direct labors 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 Variable Cost per Unit Sold $420,000 $28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively Foundational 9-2 (Algo) 2. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Materials quantity variance 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 $7.00 per pound Direct labor 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 $420,000 Variable Cost per Unit fold $28.00 $19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-3 (Algo) 3. What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance.). Input the amount as a positive value.) Materials price variance 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 5 pounds at $7.00 per pound Direct labori 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $35.00 48.00 12.00 $95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Pised Cost per Month $360,000 $420,000 Variable Cost per Unit Sold $28.00 $19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively Foundational 9-6 (Algo) 6. What direct labor cost would be included in the company's flexible budget for March? Direct labor cost 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 materiali 5 pounds at $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overheadi 3 hours at $4 per hour Total standard variable cost per unit $35.00 40.00 12.00 $95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 Variable Cost per Unit Bold $420,000 $28.00 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively Foundational 9-7 (Algo) 7. What is the direct labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le, zero variance.). Input the amount as a positive value.) Direct labor efficiency variance 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 Direct labor 3 hours at $16 $7.00 per pound per hour Variable overheads 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $ 95.00 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Advertising Sales salaries and commissions Shipping expenses per Month Unit Sold $360,000 $420,000 $28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-8 (Algo) 8. What is the direct labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Direct labor rate variance 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 $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $ 95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Coat per Month Variable Cost per Unit Sold $360,000 $420,000 $ 28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-9 (Algo) 9. What variable manufacturing overhead cost would be included in the company's flexible budget for March? Variable manufacturing overhead cost 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 $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $ 95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 Variable Cost per Unit Sold $420,000 $28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-10 (Algo) 10. What is the variable overhead efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Vanable overhead efficiency variance 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 $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $ 95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 Variable Cost per Unit Sold $420,000 $28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090, d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-11 (Algo) 11. What is the variable overhead rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance.). Input the amount as a positive value.) Variable overhead rate variance 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 $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $ 95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost Variable Cost per Unit Sold per Month $360,000 $420,000 $28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-12 (Algo) 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March? Advertising Sales salaries and commissions Shipping expenses 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 $7.00 per pound Direct labor: 3 hours at $16 per hour Variable overheads 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 Variable Cost per Unit Sold $420,000 $28.00 $19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production.. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-13 (Algo) 13. What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Spending variance related to advertising 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 $7.00 per pound Direct labors 3 hours at $16 per hour Variable overhead: 3 hours at $4 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $ 95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $360,000 $420,000 Variable Cost per Unit Sold $ 28.001 $19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b. Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-14 (Algo) 14. What is the spending variance related to sales salaries and commissions? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance.). Input the amount as a positive value.) Spending variance related to sales salaries and commissions 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 $7.00 per pound Variable overhead: 3 hours at $4 per hour Direct labor: 3 hours at $16 per hour Total standard variable cost per unit $ 35.00 48.00 12.00 $95.00 The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost Variable Cost per per Month $360,000 Unit Sold $420,000 $28.00 $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 175,000 pounds of raw materials at a cost of $6.80 per pound. All of this material was used in production. b Direct-laborers worked 71,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $340,090. d. Total advertising, sales salaries and commissions, and shipping expenses were $370,000, $535,000, and $275,000, respectively. Foundational 9-15 (Algo) 15. What is the spending variance related to shipping expenses? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance.). Input the amount as a positive value.) Spending variance related to shipping expenses