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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct
labourhours, and its standard costs per unit are as follows:
Direct materials: at $ per
Direct labour: hours at $ per hour
Variable overhead: hours at $ per hour
Total standard cost per unit
$
$
The company planned to produce and sell units in March. However, during March the company actually produced
and sold units and incurred the following costs:
a Purchased of raw materials at a cost of $ per All of this material was used in production.
b Direct labour: hours at a rate of $ per hour.
c Total variable manufacturing overhead for the month was $
What is 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.
