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