Linis Company produces a commercial cleaning compound known as Zide. The direct materials and direct labor standards for one unit of Zide are as follows: Direct Materials Direct Labor Standard Qty Standard Price Standard Cost P 2.5/ Ib P 35/ hr 4.6 Ibs P 11.50 0.2 hr 7.00 During the most recent month, the following activity was recorded: [a] Twenty thousand pounds of material were purchased at a cost of P2.35 per pound. [b] All of the materials purchased was used to produce 4,000 units of Zide. [c] 750 hours of direct labor time were recorded at a total labor cost of P30,375. Compute for the direct labor efficiency variance. Indicate whether favorable or unfavorable.

Linis Company produces a commercial cleaning compound known as Zide. The direct materials and direct labor standards for one unit of Zide are as follows: Direct Materials Direct Labor Standard Qty Standard Price Standard Cost P 2.5/ Ib P 35/ hr 4.6 Ibs P 11.50 0.2 hr 7.00 During the most recent month, the following activity was recorded: [a] Twenty thousand pounds of material were purchased at a cost of P2.35 per pound. [b] All of the materials purchased was used to produce 4,000 units of Zide. [c] 750 hours of direct labor time were recorded at a total labor cost of P30,375. Compute for the direct labor efficiency variance. Indicate whether favorable or unfavorable.

Name: Linis Company produces a commercial cleaning compound known as Zide.
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Description: Linis Company produces a commercial cleaning compound known as Zide. The directmaterials and direct labor standards for one unit of Zide are as follows:Standard Qty Standard Price Standard CostP 2.5/ IbP 35/ hrDirect Materials4.6 IbsP 11.50Direct La

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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