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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 $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 is the variable overhead rate variance for March? (Do not round intermediate calculations. 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.).) Variable overhead rate variance _______ 2. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the companys flexible budget for March? Preble Company Flexible Budget For the Month Ended March 31 Units sold (q)33,000 Expenses: Advertising _________ Sales salaries and commissions__________ Shipping expenses_______ Total _______ 3. What is the spending variance related to advertising? (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.).) Spending variance ___________ 4. What is the spending variance related to sales salaries and commissions? (Input the amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.).) Spending variance __________ 5. What is the spending variance related to shipping expenses? (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.).) Spending variance __________ THANK YOU SO VERY MUCH FOR YOUR SUPPORT!!!

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