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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 material: 4 pounds at $9.00 per pound $ 36.00

Direct labor: 3 hours at $15 per hour 45.00

Variable overhead: 3 hours at $6 per hour 18.00

Total standard variable cost per unit $ 99.00

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

Fixed Cost per Month Variable Cost per Unit Sold

Advertising $ 210,000

Sales salaries and commissions $ 120,000 $ 13.00

Shipping expenses $ 4.00

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:

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

Direct-laborers worked 56,000 hours at a rate of $16.00 per hour.

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

Total advertising, sales salaries and commissions, and shipping expenses were $220,000, $460,000, and $125,000, respectively.

rev: 11_16_2018_QC_CS-146879

2. What is the materials quantity variance for March