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:
Direct materials: pounds at $ per pound $
Direct labor: hours at $ per hour
Variable overhead: hours at $ per hour
Total standard cost per unit $
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:
Purchased pounds of raw materials at a cost of $ per pound. All of this material was used in production.
Direct laborers worked hours at a rate of $ per hour.
Total variable manufacturing overhead for the month was $
If Preble had purchased pounds of materials at $ per pound and used pounds in production, what would be the materials price variance for March?
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance. Input all amounts as positive values.
