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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor - hours and its standard cost card per

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 $
1
1
.
0
0
per pound $
5
5
.
0
0
Direct labor:
3
hours at $
1
2
per hour
3
6
.
0
0
Variable overhead:
3
hours at $
7
per hour
2
1
.
0
0
Total standard variable cost per unit $
1
1
2
.
0
0
The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $
2
8
0
,
0
0
0
Sales salaries and commissions $
2
6
0
,
0
0
0
$
2
0
.
0
0
Shipping expenses $
1
1
.
0
0
The planning budget for March was based on producing and selling
2
1
,
0
0
0
units. However, during March the company actually produced and sold
2
6
,
6
0
0
units and incurred the following costs: Purchased
1
5
4
,
0
0
0
pounds of raw materials at a cost of $
9
.
5
0
per pound. All of this material was used in production. Direct
-
laborers worked
6
3
,
0
0
0
hours at a rate of $
1
3
.
0
0
per hour. Total variable manufacturing overhead for the month was $
5
1
0
,
9
3
0
.
Total advertising, sales salaries and commissions, and shipping expenses were $
2
8
6
,
0
0
0
,
$
4
9
5
,
0
0
0
,
and $
1
9
5
,
0
0
0
,
respectively.
6
.
What direct labor cost would be included in the company
s flexible budget for March?

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