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Required information The Foundational 15 [LO9-1, LO9-2, L09-4, LO9-5, LO9-6) [The following information applies to the questions displayed below) Preble Company manufactures one product. Its

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Required information The Foundational 15 [LO9-1, LO9-2, L09-4, LO9-5, LO9-6) [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 tabor hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $8.00 per pound $40.00 Direct labor: 2 hours at $14 per hour 28.00 Variable overhead: 2 hours at $5 per hour 10.00 Total standard variable cost per unit $78.00 The company also established the following cost formulas for its selling expenses: Variable Fixed Cost Cost per per Month Unit Sold Advertising $ 200,000 Sales salaries and commissions $ 100,000 $12.00 Shipping expenses $ 3.00 The planning budget for March was based on producing and selling 25,000 units. However, during March the company actually produced and sold 30,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.50 per pound, All of this material was used in production b. Direct-laborers worked 55,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $280,500 d. Total advertising, sales salaries and commissions, and shipping expenses were $210,000, $455,000, and $115,000, respectively, 5. If Preble had purchased 170,000 pounds of materials at $7.50 per pound and used 160,000 pounds in production, what would be the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance.). Input the amount as a positive value.) Materials price variance 6. What direct labor cost would be included in the company's flexible budget for March? Direct labor cost 7. What is the direct labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance.). Input the amount as a positive value.) Direct labor efficiency variance 8. What is the direct labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input the amount as a positive value.) Direct labor rate variance

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