Preble Company manufactures one product. Its variable manufacturing overhead is

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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: 4 pounds at $9 per pound $ 36 Direct labor: 3 hours at $12 per hour 36 Variable overhead: 3 hours at $8 per hour 24 Total standard variable cost per unit $ 96 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 230,000 Sales salaries and commissions $ 130,000 $ 10.00 Shipping expenses $ 4.00 The planning budget for March was based on producing and selling 28,000 units. However, during March the company actually produced and sold 33,000 units and incurred the following costs: a. Purchased 165,000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production. b. Direct-laborers worked 58,000 hours at a rate of $13 per hour. c. Total variable manufacturing overhead for the month was $729,000. d. Total advertising, sales salaries and commissions, and shipping expenses were $233,000, $450,000, and $144,000, respectively. Required: What raw materials cost would be included in the company

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