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Accounting

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Required information
[The following information applies to the questions displayed below.]
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 materials: 6 pounds at $8 per pound
Direct labor: 4 hours at $13 per hour
Variable overhead: 4 hours at $5 per hour
Total standard cost per unit
$48
The planning budget for March was based on producing and selling 20,000 units. However, during March the company
actually produced and sold 25,500 units and incurred the following costs:
a. Purchased 170,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
b. Direct laborers worked 73,000 hours at a rate of $14 per hour.
c. Total variable manufacturing overhead for the month was $427,050.
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 (i.e., zero
variance.). Input all amounts as positive values.
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