ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinet is made. The standard costs of producing one (1) of these cabinets are shown below: Direct material (Lumber) 50 board feet at P4.00 per foot P200.00 Labor standard 8 hours at P10.00 per hour 80.00 Variable overhead 8 hours at P5.00 per hour 40.00 Fixed overhead 8 hours at P3.00 per hour 24.00 Total P344.00 During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shown below: Direct materials purchased (30,000 board feet at P4.10 per board foot) Direct materials used (24,000 board feet) Direct labor (4,200 hours at P9.50 per hour) Total variable overhead cost P123,000 39,900 22,000 11,000 Total fixed overhead cost The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours is P36,000, of which P22,500 is variable and P13,500 is fixed overhead. Requirements 1. Material purchase price variance (MPPV) & Material usage/quantity variance (MQV) 2. Labor rate variance (LRV) & Labor efficiency variance (LEV) 3. Variable overhead (VOH) rate variance & VOH efficiency variance

ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinet is made. The standard costs of producing one (1) of these cabinets are shown below: Direct material (Lumber) 50 board feet at P4.00 per foot P200.00 Labor standard 8 hours at P10.00 per hour 80.00 Variable overhead 8 hours at P5.00 per hour 40.00 Fixed overhead 8 hours at P3.00 per hour 24.00 Total P344.00 During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shown below: Direct materials purchased (30,000 board feet at P4.10 per board foot) Direct materials used (24,000 board feet) Direct labor (4,200 hours at P9.50 per hour) Total variable overhead cost P123,000 39,900 22,000 11,000 Total fixed overhead cost The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours is P36,000, of which P22,500 is variable and P13,500 is fixed overhead. Requirements 1. Material purchase price variance (MPPV) & Material usage/quantity variance (MQV) 2. Labor rate variance (LRV) & Labor efficiency variance (LEV) 3. Variable overhead (VOH) rate variance & VOH efficiency variance

Name: ABC Company has established standard costs for the furniture departme
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Description: ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinetis made. The standard costs of producing one (1) of these cabinets are shown below:Direct material (Lumber)50 board feet at P4.00 per footP2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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