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 $8.00 per pound	$ 40.00
Direct labor: 3 hours at $15 per hour	45.00
Variable overhead: 3 hours at $9 per hour	27.00
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	$ 350,000
Sales salaries and commissions	$ 400,000	$ 27.00
Shipping expenses		$ 18.00

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

1. Purchased 160,000 pounds of raw materials at a cost of $6.50 per pound. All of this material was used in production.
2. Direct-laborers worked 70,000 hours at a rate of $16.00 per hour.
3. Total variable manufacturing overhead for the month was $655,200.
4. Total advertising, sales salaries and commissions, and shipping expenses were $358,000, $530,000, and $265,000, respectively.

12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March?

Correct Incorrect Correct

Advertising	$350,000
Sales salaries and commissions	$1,102,000
Shipping expenses	$468,000

14. What is the spending variance related to sales salaries and commissions?(The indicated is "F" for favorable)