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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:
a Purchased pounds of raw materials at a cost of $ per pound. All of this material was used in production.
b Direct laborers worked hours at a rate of $ per hour.
c Total variable manufacturing overhead for the month was $
What is 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.
