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.

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

14)Wha is the variable overhead rate variance for March?

13)	Variable manufacturing overhead cost included in Flexible Budget:
	Units produced in Flexible Budget (a)
	Direct labor required per unit (b)
	Total direct labor hours needed (a) x (b) = (c )
	Variable mfg. overhead cost per direct labor hour (d)
	Total variable mfg. overhead cost included in Flexible Budget (c ) x (d)
14)	Variable overhead rate variance for March
	AH (AR - SR)
	Actual variable mfg. overhead rate/hour (a)
	Standard variable mfg. overhead rate/hour (b)
	Variance (a) - (b)= (c )
	Actual quantity of direct labor used (d)
	*Variable mfg. overhead rate variance (c ) x (d)
	* If actual variable mfg. overhead rate paid is greater than standard variable mfg. overhead rate allowed,
	the variable mfg. overhead rate variance would be unfavorable and vice versa.