Mark Corp. makes a chair with the following standard costs for direct materials and direct labor: Direct materials: 2 meters @ P3.25 per meter P6.50 Direct labor: 0.40 hours @ P12 per hour P4.80 During the month of December, 25,000 units of chairs were produced. The costs related to the production of these chairs were as follows: Direct materials purchased 60,000 meters @ P3.15 per meter Direct materials used in the production 52,500 meters Direct labor 9,875 hours @ P12.20 per hour The standard cost variances for direct materials and direct labor are as follows: Labor Efficiency Variance 124 hours @ P12 per hour 1,500 F Labor Rate Variance 9,875 hours @ PO.20 per hour 1,975 U Material Price Variance 60,000 meters @ PO.10 per meter 6,000 F Material Quantity Variance 2,500 meters @ P3.25 per meter 8,125 U Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.
Mark Corp. makes a chair with the following standard costs for direct materials and direct labor:
Direct materials: 2 meters @ P3.25 per meter P6.50
Direct labor: 0.40 hours @ P12 per hour P4.80
During the month of December, 25,000 units of chairs were produced. The costs related to the production of these chairs were as follows:
Direct materials purchased 60,000 meters @ P3.15 per meter
Direct materials used in the production 52,500 meters
Direct labor 9,875 hours @ P12.20 per hour
The
Labor Efficiency Variance 124 hours @ P12 per hour 1,500 F
Labor Rate Variance 9,875 hours @ PO.20 per hour 1,975 U
Material Price Variance 60,000 meters @ PO.10 per meter 6,000 F
Material Quantity Variance 2,500 meters @ P3.25 per meter 8,125 U
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