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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 as follows:

Direct materials: 4 pounds at $9 per pound	$	36
Direct labor: 3 hours at $15 per hour		45
Variable overhead: 3 hours at $6 per hour		18
Total standard cost per unit	$	99

The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs:

1. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.

2. Direct laborers worked 56,000 hours at a rate of $16 per hour.

3. Total variable manufacturing overhead for the month was $524,720.

1) a)What direct labor cost would be included in the companys planning budget for March

b)What direct labor cost would be included in the companys flexible budget for March?

c) What is the labor rate variance for March? what about the labor efficiency and spending variances for March?

1.a) If Preble had purchased 171,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March? favorable or unfavorable?