GenoPearls company manufactures product X. The company uses a standard costing of accounting system. In July 2012, 12,000 products were made. The following standard cost data applied to the month of July. · Cost Element, Standard (per unit) · Direct materials, 5 meters at P 7 per meter · Direct Labor, 1 hour at P 12 per hr · Overhead, 1 hour at P 9 per hr (fixed P 6; variable is P 3) The actual cost data are as follows: · Direct materials, P423,400 for 58,000 meters (7.30 per meter) · Direct Labor, P128,800 for 11,500 hours (P 11.20 per hour) · Overhead, P90,000 fixed overhead and P 42,000 variable overhead Overhead is applied on the basis of direct labor hours per GenoPearls Corporation. At normal capacity, budgeted fixed overhead costs were P 90,000 and a budgeted variable overhead cost is P 45,000. Compute the volume variance (Write F if favorable or UF if unfavorable to your final answer without space: Example: P12,000UF)
GenoPearls company manufactures product X. The company uses a
· Cost Element, Standard (per unit)
· Direct materials, 5 meters at P 7 per meter
· Direct Labor, 1 hour at P 12 per hr
·
The actual cost data are as follows:
· Direct materials, P423,400 for 58,000 meters (7.30 per meter)
· Direct Labor, P128,800 for 11,500 hours (P 11.20 per hour)
· Overhead, P90,000 fixed overhead and P 42,000 variable overhead
Overhead is applied on the basis of direct labor hours per GenoPearls Corporation. At normal capacity, budgeted fixed overhead costs were P 90,000 and a budgeted variable overhead cost is P 45,000. Compute the volume variance (Write F if favorable or UF if unfavorable to your final answer without space: Example: P12,000UF)
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