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 $8.00 per pound Direct labor: 2 hours at $14 per hour Variable overhead: 2 hours at $5 per hour Total standard variable cost per unit $40.00 28.00 10.00 $78.00 The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Fixed cost per Month $ 200,000 $ 100,000 Advertising Sales salaries and comissions Shipping expenses $12.00 $ 3.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7,50 per pound. All of this material was used in production b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $280,500. d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively Required: What raw materials cost would be included in the company's flexible budget for March? Raw material cost What is the materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for afavorable, and "None" for no effect (.e., zero variance.). Input the amount as a positive value.) aterials quantity variance What is the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for mfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Materials price variance If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,000 pounds in production, what would be ne materials quantity variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, nd "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Materials quantity variance If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,000 pounds in production, what would be e materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and Hone" for no effect (.e., zero variance.). Input the amount as a positive value.) Materials price variance What direct labor cost would be included in the company's flexible budget for March? irect labor cost What is the direct labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for afavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) irect labor efficiency variance What is the direct labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for mfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Irect labor rate variance What variable manufacturing overhead cost would be included in the company's flexible budget for March? ariable manufacturing overhead cost 10. What is the variable overhead efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Variable overhead efficiency variance What is the variable overhead rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for favorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) ariable overhead rate variance What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible aget for March? vertising es salaries and commissions pping expenses . What is the spending variance related to advertising? (Indicate the effect of each variance by selecting "F" for favorable, "U" for afavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Spending variance related to advertising What is the spending variance related to sales salaries and commissions? (Indicate the effect of each variance by selecting "F" for morable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) anding variance related to sales salaries and commissions What is the spending variance related to shipping expenses? (Indicate the effect of each variance by selecting "F" for favorable, * for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Dending variance related to shipping expenses
