The Foundational 15 [LO10-1, LO10-2, LO10-3]

[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 per unit is as follows:

Direct materials: 5 pounds at $9 per pound$45Direct labor: 3 hours at $14 per hour42Variable overhead: 3 hours at $9 per hour27Total standard cost per unit$114

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 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 65,000 hours at a rate of $15 per hour.
3. Total variable manufacturing overhead for the month was $612,300.

rev: 11_20_2017_QC_CS-109672

Foundational 10-12

12. What variable manufacturing overhead cost would be included in the company's planning budget for March?