Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct
laborhours and its standard cost card per unit is as follows:
The company also established the following cost formulas for its selling expenses:
The planning budget for March was based on producing and selling units. However, during March the company
actually produced and sold units and incurred the following costs:
a Purchased pounds of raw materials at a cost of $ per pound. All of this material was used in production.
b Directlaborers worked hours at a rate of $ per hour.
c Total variable manufacturing overhead for the month was $
d Total advertising, sales salaries and commissions, and shipping expenses were $$ and $
respectively.
If Preble had purchased pounds of materials at $ per pound and used pounds in production, what would be
the materials quantity 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.
