Required information [The following information applles to the questions displayed below.] 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: 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: a. Purchased 155.000 pounds of raw materials at a cost of $7.20 per pound. All of this materlal was used in production. b. Direct laborers worked 56.000 hours at a rate of $16 per hout. c. Total variable manufacturing overhead for the month was $524.720. Required: 1. What raw materials cost would be included in the company's planning budget for March? Preble Company manufactures one product. Its variable manufacturing overhead is applled to production based on direct labor-hours and its standard cost card per unit is as follows: 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: 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 56,000 hours at a rate of $16 per hour, c. Total variable manufacturing overhead for the month was $524,720. 2. What raw materials cost would be included in the company's flexible budget for March? Answer is complete but not entirely correct. Preble Company manufactures one product. Its varlable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: 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: 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 56,000 hours at a rate of $16 per hour. c. Total variable manufacturing overhead for the month was $524,720. What is the materials pice variance for March? lote: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero ariance.). Input all amounts as positive values. Hequired intormation [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card pet unit is as follows: 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: 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 56,000 hours at a rate of $16 per hour. c. Total variable manufacturing overhead for the month was $524.720. What is the materials quantity variance for March? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero arionce.). Input all omounts as positive values
