Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based ondirect labor-hours and its standard cost card per unit is as follows:Direct material: 4 pounds at$9.00 per poundDirect labor: 3 hours at$16.00 per hourVariable overhead: 3 hoursat $8.00 per hourTotal standard variable costper unit$36.0048.0024.00$108.00The company also established the following cost formulas for its selling expenses:AdvertisingSales salaries and commissionsShipping expensesFixed Cost perMonth230,00$0270,00$0Variable Costper Unit Sold$14.00$ 4.00The planning budget for March was based on producing and selling 28,000 units. However, during March thecompany 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 inproduction.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.15 PROBLEMS REQUIRED:1. What raw materials cost would be included in the company’s flexible budget for March?2. What is the materials quantity variance for March? (Input the amount as a positive value. Indicate the effectof each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)3. What is the materials price variance for March? (Input the amount as a positive value. Indicate the effect ofeach variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)If Preble had purchased 173,000 pounds of materials at $7 per pound and used 165,000 pounds in production,4. what would be the materials quantity variance for March? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e.,zero variance.).)5. If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds inproduction, what would be the materials price variance for March? (Input the amount as a positive value.Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” forno effect (i.e., zero variance.).)6. What direct labor cost would be included in the company’s flexible budget for March?7. What is the direct labor efficiency variance for March? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e.,zero variance.).)8. What is the direct labor rate variance for March? (Input the amount as a positive value. Indicate the effect ofeach variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)9. What variable manufacturing overhead cost would be included in the company’s flexible budget for March?10. What is the variable overhead efficiency variance for March? (Input the amount as a positive value. Indicatethe effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)11. What is the variable overhead rate variance for March? (Do not round intermediate calculations. Input theamount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” forunfavorable, and “None” for no effect (i.e., zero variance.).)12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in thecompany’s flexible budget for March?13. What is the spending variance related to advertising? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)14. What is the spending variance related to sales salaries and commissions? (Input the amounts as positivevalues. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and”None” for no effect (i.e., zero variance.).)15. What is the spending variance related to shipping expenses? (Input the amount as a positive value. Indicatethe effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based ondirect labor-hours and its standard cost card per unit is as follows:Direct material: 4 pounds at$9.00 per poundDirect labor: 3 hours at$16.00 per hourVariable overhead: 3 hoursat $8.00 per hourTotal standard variable costper unit$36.0048.0024.00$108.00The company also established the following cost formulas for its selling expenses:AdvertisingSales salaries and commissionsShipping expensesFixed Cost perMonth230,00$0270,00$0Variable Costper Unit Sold$14.00$ 4.00The planning budget for March was based on producing and selling 28,000 units. However, during March thecompany 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 inproduction.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.15 PROBLEMS REQUIRED:1. What raw materials cost would be included in the company’s flexible budget for March?2. What is the materials quantity variance for March? (Input the amount as a positive value. Indicate the effectof each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)3. What is the materials price variance for March? (Input the amount as a positive value. Indicate the effect ofeach variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)If Preble had purchased 173,000 pounds of materials at $7 per pound and used 165,000 pounds in production,4. what would be the materials quantity variance for March? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e.,zero variance.).)5. If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds inproduction, what would be the materials price variance for March? (Input the amount as a positive value.Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” forno effect (i.e., zero variance.).)6. What direct labor cost would be included in the company’s flexible budget for March?7. What is the direct labor efficiency variance for March? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e.,zero variance.).)8. What is the direct labor rate variance for March? (Input the amount as a positive value. Indicate the effect ofeach variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)9. What variable manufacturing overhead cost would be included in the company’s flexible budget for March?10. What is the variable overhead efficiency variance for March? (Input the amount as a positive value. Indicatethe effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)11. What is the variable overhead rate variance for March? (Do not round intermediate calculations. Input theamount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” forunfavorable, and “None” for no effect (i.e., zero variance.).)12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in thecompany’s flexible budget for March?13. What is the spending variance related to advertising? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)14. What is the spending variance related to sales salaries and commissions? (Input the amounts as positivevalues. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and”None” for no effect (i.e., zero variance.).)15. What is the spending variance related to shipping expenses? (Input the amount as a positive value. Indicatethe effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based ondirect labor-hours and its standard cost card per unit is as follows:Direct material: 4 pounds at$9.00 per poundDirect labor: 3 hours at$16.00 per hourVariable overhead: 3 hoursat $8.00 per hourTotal standard variable costper unit$36.0048.0024.00$108.00The company also established the following cost formulas for its selling expenses:AdvertisingSales salaries and commissionsShipping expensesFixed Cost perMonth230,00$0270,00$0Variable Costper Unit Sold$14.00$ 4.00The planning budget for March was based on producing and selling 28,000 units. However, during March thecompany 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 inproduction.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.15 PROBLEMS REQUIRED:1. What raw materials cost would be included in the company’s flexible budget for March?2. What is the materials quantity variance for March? (Input the amount as a positive value. Indicate the effectof each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)3. What is the materials price variance for March? (Input the amount as a positive value. Indicate the effect ofeach variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)If Preble had purchased 173,000 pounds of materials at $7 per pound and used 165,000 pounds in production,4. what would be the materials quantity variance for March? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e.,zero variance.).)5. If Preble had purchased 173,000 pounds of materials at $7.20 per pound and used 165,000 pounds inproduction, what would be the materials price variance for March? (Input the amount as a positive value.Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” forno effect (i.e., zero variance.).)6. What direct labor cost would be included in the company’s flexible budget for March?7. What is the direct labor efficiency variance for March? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e.,zero variance.).)8. What is the direct labor rate variance for March? (Input the amount as a positive value. Indicate the effect ofeach variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zerovariance.).)9. What variable manufacturing overhead cost would be included in the company’s flexible budget for March?10. What is the variable overhead efficiency variance for March? (Input the amount as a positive value. Indicatethe effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)11. What is the variable overhead rate variance for March? (Do not round intermediate calculations. Input theamount as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” forunfavorable, and “None” for no effect (i.e., zero variance.).)12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in thecompany’s flexible budget for March?13. What is the spending variance related to advertising? (Input the amount as a positive value. Indicate theeffect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)14. What is the spending variance related to sales salaries and commissions? (Input the amounts as positivevalues. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and”None” for no effect (i.e., zero variance.).)15. What is the spending variance related to shipping expenses? (Input the amount as a positive value. Indicatethe effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect(i.e., zero variance.).)