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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: Direct material pounds at $10 per pound Diret Tabour 4 hours at 10 per hour Variable overhead hours at 37 per hour Total standard variable cost per unit $50 64 28 0142 Fixed overhond was budgeted at $589,000. Fixed overhead is applied on the basis of direct labour hours. The company also established the following cost formulas for its selling expenses: Pixed coat Variable Coat per Month per Unit Sold Advertising $220,000 Salen salaries and comissions $120,000 $14.00 Shipping expenses $ 5.00 The static fie, planning) budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,600 units and incurred the following costs: a. Purchased 164,000 pounds of raw materials at a cost of $7.5 per pound. All of this material was used in production b. Direct-labourers worked 57,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $653,200. And fixed manufacturing overhead was $584,000. d. Total advertising, sales salaries and commissions, and shipping expenses were $232,000, $460,000, and $143,000, respectively. Required: What direct labour cost would be included in the company's flexible budget for March? Direct labour cost
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