Question

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 $16.00 per hour		48.00
Variable overhead: 3 hours at $8.00 per hour		24.00
Total standard variable cost per unit	$	108.00

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

	Fixed Cost per Month			Variable Cost per Unit Sold
Advertising	$	230,000
Sales salaries and commissions	$	270,000		$	14.00
Shipping expenses				$	4.00

The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs:

a.	Purchased 165,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b.	Direct-laborers worked 87,000 hours at a rate of $17.00 per hour.
c.	Total variable manufacturing overhead for the month was $729,060.
d.	Total advertising, sales salaries and commissions, and shipping expenses were $233,000, $729,060, and $144,000, respectively. 1. What raw materials cost would be included in the company’s flexible budget for March? Raw Material Cost_______ 2. What is the materials quantity variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) Materials quantity varance _______ 3. What is the materials price variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) Materials price variance ________ 4. If Preble had purchased 173,000 pounds of materials at $7 per pound and used 165,000 pounds in production, what would be the materials quantity variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) Materials quantity variance ___________ 5. If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds in production, what would be the materials price variance for March? (Input the amount as a positive value. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) Materials price variance ________ THANK YOU SO MUCH FOR YOUR SUPPORT!!!