Boracay Company manufactures desks with vinyl tops. The standard material cost for the vinyl used for Model S desk is P27.00 based on 12 square feet of vinyl at a cost Ph2.25 per square foot. A production of run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of Ph2.00 per square foot, a total cost of Ph 25,200. The usage variance resulting from the above production run was ? Ph 1,200 unfavorable Ph 1,350 unfavorable Ph 1,800 favorable Ph 3,150 favorable

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Boracay Company manufactures desks with vinyl tops. The standard material cost for the vinyl used for Model S desk is P27.00 based on 12 square feet of vinyl at a cost Ph2.25 per square foot. A production of run of 1,000 desks in March resulted in usage of 12,600 square feet of vinyl at a cost of Ph2.00 per square foot, a total cost of Ph 25,200. The usage variance resulting from the above production run was ?

Ph 1,200 unfavorable

Ph 1,350 unfavorable

Ph 1,800 favorable

Ph 3,150 favorable

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