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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

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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 as follows: Direct material: 4 pounds at $10 per, pound Direct labor. 2 hours at $13 per hour Variable overhead: 2 hours at $9 per hour $ 40 26 18 Total standard variable cost per unit $. 84 Fixed overhead was budgeted at $593.000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses Fixed Cost Variable Cost per Month per Unit Sold Advertising $240.000 Sales salaries and commissions $140,000 $11.00 Shipping expenses $ 3.00 The static fie planning) budget for March was based on producing and selling 29.000 units. However during March the company actually produced and sold 34 000 units and incurred the following costs a Purchased 160.000 pounds of raw materials at a cost of $8.5 per pound All of this material was used in production Direct-labourers worked 50 000 hours at a rate of 514 per hour Sasvattable manufacturing overhead for the month was $564 200 And fixed manufacturing overhead Fixed overhead was budgeted at $593,000. Fixed overhead is applied on the basis of direct labour-hours 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 $240,000 $140,000 $11.00 $ 3.00 The static (.e., planning) budget for March was based on producing and selling 29.000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $8.5 per pound. All of this material was used in production b. Direct-labourers worked 59,000 hours at a rate of $14 per hour c. Total variable manufacturing overhead for the month was $564 200. And fixed manufacturing overhead was $588,000 d. Total advertising, sales salaries and commissions, and shipping expenses were $246.000, $505,000 and $119,000 respectively Required: What raw materials cost would be included in the company's flexible budget for March? Raw material cost

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