10. Volume variance in units and in hours. Consider the following standard cost per unit based on a normal capacity of 40,000 units: 1.4 kgs. @ P20 0.2 hr. @ P80 0.2 hr. @ P100 0.2 hr. @ P50 Direct materials P28.00 Direct labor 16.00 Variable overhead 20.00 Fixed overhead 10.00 Compute the volume variance under each of the following independent actual production conditions (identify the variances are unfavorable or favorable): a. 40,000 units. b. 43,200 units. 37,800 units. d. 40,000 units and 8,000 hours. 41,400 units and 7,650 hours. 38,800 units and 9,800 hours. с. е. f.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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10. Volume variance in units and in hours. Consider the following standard cost per
unit based on a normal capacity of 40,000 units:
Direct materials
1.4 kgs. @ P20
0.2 hr. @ P80
0.2 hr. @ P100
0.2 hr. @ P50
P28.00
16.00
Direct labor
Variable overhead
Fixed overhead
20.00
10.00
Compute the volume variance under each of the following independent actual
production conditions (identify the variances are unfavorable or favorable):
40,000 units.
a.
b. 43,200 units.
37,800 units.
40,000 units and 8,000 hours.
41,400 units and 7,650 hours.
38,800 units and 9,800 hours.
с.
d.
е.
f.
Transcribed Image Text:10. Volume variance in units and in hours. Consider the following standard cost per unit based on a normal capacity of 40,000 units: Direct materials 1.4 kgs. @ P20 0.2 hr. @ P80 0.2 hr. @ P100 0.2 hr. @ P50 P28.00 16.00 Direct labor Variable overhead Fixed overhead 20.00 10.00 Compute the volume variance under each of the following independent actual production conditions (identify the variances are unfavorable or favorable): 40,000 units. a. b. 43,200 units. 37,800 units. 40,000 units and 8,000 hours. 41,400 units and 7,650 hours. 38,800 units and 9,800 hours. с. d. е. f.
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