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: $ 0.00 Direct material: 5 pounds at $8.00 per pound Direct labort 3 hours at $15 per hour Variable overhead: 3 hours at 59 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses. Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 350,000 $ 400, $ 27.00 The planning budget for March was based on producing and selling 21.000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: a. Purchased 160.000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production b. Direct-laborers worked 70,000 hours at a rate of $16.00 per hour c. Total variable manufacturing overhead for the month was $655,200. d. Total advertising, sales salaries and commissions, and shipping expenses were $358,000 $530,000, and $265.000, respectively Required: 1. What raw materials cost would be included in the company's flexible budget for March? The following information applies to the questions displayed below.) 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: $4e.ee 45.89 Direct material: 5 pounds at $8.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at 39 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $ 350.899 $400,000 The planning budget for March was based on producing and selling 21.000 units. However, during March the company actually produced and sold 26.000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production b. Direct-laborers worked 70.000 hours at a rate of $16.00 per hour. c. Total variable manufacturing overhead for the month was $655.200. d. Total advertising, sales salaries and commissions, and shipping expenses were $358,000, $530,000, and $265.000. respectively 2. What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (.e. zero variance.). Input the amount as a positive value.) Materials quantity variance (The following information applies to the questions displayed below) 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: $4 .ee Direct material: 5pounds at 58.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at 59 per hour Total standard variable cost per unit celor $112.00 The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Fixed Cost per Month $350.ee $ 400,00 Advertising Sales salaries and commissions Shipping expenses $ 27.80 $18.00 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production b. Direct-laborers worked 70.000 hours at a rate of $16.00 per hour Total variable manufacturing overhead for the month was 5655.200 d. Total advertising, sales salaries and commissions, and shipping expenses were $358,000, $530,000, and $265,000. respectively 4. If Preble had purchased 185.000 pounds of materials at $6.50 per pound and used 160.000 pounds in production, what would be the materiais quantity variance for March? (Indicate the effect of coch variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance.). Input the amount oso positive value.) Materials quantity variance
