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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 $8.00 per pound
Direct labor: 2 hours at $16 per hour
Variable overhead: 2 hours at $6 per hour
Total standard variable cost per unit
The company also established the following cost formulas for its selling expenses:
\table[[,\table[[Fixed Cost per],[Month]],\table[[Variable],[Cost per],[Unit Sold]]],[Advertising,$320,000,],[Sales salaries and commissions,$340,000,\table[[$24.00
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