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 $9.00 per pound	$	45.00
Direct labor: 3 hours at $18.00 per hour		54.00
Variable overhead: 3 hours at $9.00 per hour		27.00
Total standard variable cost per unit	$	126.00

The company also established the following cost formulas for its selling expenses:

	Fixed Cost per Month			Variable Cost per Unit Sold
Advertising	$	300,000
Sales salaries and commissions	$	220,000		$	16.00
Shipping expenses				$	4.00

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:

a.	Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b.	Direct-laborers worked 68,000 hours at a rate of $19.00 per hour.
c.	Total variable manufacturing overhead for the month was $615,000.
d.	Total advertising, sales salaries and commissions, and shipping expenses were $308,000, $614,720, and $106,000, respectively.

Questions:

What is the variable overhead rate variance for March?

What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the companys flexible budget for March?

Preble Company
Flexible Budget
For the Month Ended March 31
Units sold (q)	24,800
Expenses:
Advertising
Sales salaries and commissions
Shipping expenses
Total

What is the spending variance related to advertising?

What is the spending variance related to sales salaries and commissions?

What is the spending variance related to shipping expenses?