Preble company manufactures one product. It's variable manufacturing overhead is applied to production basedon direct labor-hours and its standard cost card per unit 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.

5) If Preble had purchased 170,000 pounds of materials at 7.50 per pound and used 160,000 pounds in production what would be the materials price variance for march?

6) If Preble had purchased 170,000 pounds of materials at 7.50 per pound and used 160,000 pounds in production, what would be the materials quantity variance for March?

5)	Materials Price Variance
	AQ (AP - SP)
	Actual Price/ pound (a)
	Standard price/pound (b)
	Variance (a) - (b)= (c )
	Actual quantity of raw materials used (d)
	*Materials Price Variance (c ) x (d)
	* If actual price paid is greater than standard price allowed,
	the material price variance would be unfavorable and vice versa.
6)	Materials Quantity Variance
	SP (AQ - SQ)
	Actual quantity of materials used (a)
	Standard quantity allowed - see Q4 (b)
	Variance (a) - (b) =(c )
	Standard price/pound (d)
	**Materials Quantity Variance (c ) x (d)
	** If actual quantity of materials used exceed standard quantity of materials allowed,
	materials quantity variance would be unfavorable and vice versa.