Cutie Pie Company produces a single product. The standard cost for the product follows: Direct materials used in production  5,000 yards Direct materials purchased (6,000 yards) P 28,500 Direct labor costs incurred (2,100 hours)  P 17,850 Variable manufacturing overhead incurred  P 10,080   During the recent period, the company produced 1,200 units of product. Various costs associated with the production of these units are applied to products on the basis of direct labor hours. Other information are as follows: Direct materials (4 yards @ P5) P  20 Direct labor (1.5 hours @ P10) P  15 Variable manufacturing overhead (1.5 hours @ P4) P  6   The company record all variances at the earliest time possible.   The variable overhead spending variance for the period is

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Cutie Pie Company produces a single product. The standard cost for the product follows:

Direct materials used in production  5,000 yards

Direct materials purchased (6,000 yards) P 28,500

Direct labor costs incurred (2,100 hours)  P 17,850

Variable manufacturing overhead incurred  P 10,080

 

During the recent period, the company produced 1,200 units of product. Various costs associated with the production of these units are applied to products on the basis of direct labor hours. Other information are as follows:

Direct materials (4 yards @ P5) P  20

Direct labor (1.5 hours @ P10) P  15

Variable manufacturing overhead (1.5 hours @ P4) P  6

 

The company record all variances at the earliest time possible.

 


The variable overhead spending variance for the period is

 

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