Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on...
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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: Fixed overhead was budgeted at $613,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses: The static (le., planning) budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34.000 units and incurred the following costs a. Purchased 180.000 pounds of raw materials at a cost of $8.5 per pound All of this material was used in production The static (le., planning) budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 34,000 units and incurred the following costs: 0. Purchased 180.000 pounds of raw materials at a cost of $8.5 per pound. All of this material was used in production. b. Direct labouress worked 69000 hours at a rate of $15 per hour. c. Total variabie manufecturing overhead for the month was $565,200. And foxed manufacturing oveinead was $603.000. d. Total advertising, sales stalaries and commissions, and shipping expenses were $352.000,$640,000, and 5129,000 , respectively Required: What voriable manufacturing overhead cost would be included in the company's fiexble budget for March


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