The Standard manufacturing corporation uses a standard cost system in accounting for the cost of its only product. The standard cost per unit( based on 10,000 units production) was set up as follows: Direct materials, 10 kgs @11/kg; Direct labor, 8 hours @50 per hour; Factory overhead,8 hours @ 15 per hour. The following data on the operations appear in the company's record for the month of July: Units completed during the month, 8,000 units; units in process at the end of the month, with 100% materials but half completed, 1,000 units; Direct materials used, 95,000 kgs @P10 per kg; Direct labor, P3,510,000 at a rate of P54; ACtual overhead for the month P985,000. Compute for the Variable efficiency variance. Indicate whether favorable or unfavorable.
The Standard manufacturing corporation uses a
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