Marissa Co., the consultant of Marisol Co. had summarized the following standard cost data extracted from the historical recordsa and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: Input required per unit Standard cost per unit Standard cost per unit Direct Materials 6 kg per unit P90 per kg P540 Direct Labor 5 hrs per unit P50 per hr P250 Other information follows: Budgeted factory overhead for the year: Variable 480,000 Fixed 600,000 The company's normal capacity per month is 400 units Actual cost materia;s purchased for the year is P2,342,000 During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours Actual production during the year 5,150 units Compute for Spending Variance Compute for Variable Overhead Efficiency Variance Compute for Controllable Variance
Marissa Co., the consultant of Marisol Co. had summarized the following standard cost data extracted from the historical recordsa and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: Input required per unit Standard cost per unit Standard cost per unit Direct Materials 6 kg per unit P90 per kg P540 Direct Labor 5 hrs per unit P50 per hr P250 Other information follows: Budgeted factory overhead for the year: Variable 480,000 Fixed 600,000 The company's normal capacity per month is 400 units Actual cost materia;s purchased for the year is P2,342,000 During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours Actual production during the year 5,150 units Compute for Spending Variance Compute for Variable Overhead Efficiency Variance Compute for Controllable Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marissa Co., the consultant of Marisol Co. had summarized the following standard cost data extracted from the historical recordsa and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the
| Input required per unit | Standard cost per unit | Standard cost per unit | |
| Direct Materials | 6 kg per unit | P90 per kg | P540 |
| Direct Labor | 5 hrs per unit | P50 per hr | P250 |
Other information follows:
- Budgeted factory
overhead for the year:
| Variable | 480,000 |
| Fixed | 600,000 |
- The company's normal capacity per month is 400 units
- Actual cost materia;s purchased for the year is P2,342,000
- During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs
- Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed
- Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours
- Actual production during the year 5,150 units
Compute for Spending Variance
Compute for Variable Overhead Efficiency Variance
Compute for Controllable Variance
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