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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 unit is

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: 4 pounds at $10.00 per pound $ 40.00
Direct labor: 2 hours at $16 per hour 32.00
Variable overhead: 2 hours at $6 per hour 12.00
Total standard variable cost per unit $ 84.00

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

Fixed Cost per Month Variable Cost per Unit Sold
Advertising $ 270,000
Sales salaries and commissions $ 240,000 $ 19.00
Shipping expenses $ 10.00

The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs:

a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production.

b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour.

c. Total variable manufacturing overhead for the month was $390,600.

d. Total advertising, sales salaries and commissions, and shipping expenses were $280,000, $490,000, and $185,000, respectively.

2. What is the materials quantity variance for March?

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