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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

Direct material: 5 pounds at $11.00 per pound $ 55.00
Direct labor: 3 hours at $12 per hour 36.00
Variable overhead: 3 hours at $7 per hour 21.00
Total standard variable cost per unit $ 112.00

The company also established the following cost formulas for its selling expenses:

Fixed Cost per Month Variable Cost per Unit Sold
Advertising $ 280,000
Sales salaries and commissions $ 260,000 $ 20.00
Shipping expenses $ 11.00

The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs:W the month was $510,930.

Total advertising, sales salaries and commissions, and shipping expenses were $286,000, $495,000, and $195,000,

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