Problem 11: Materials, Labor and Factory Overhead Variances Julie Corporation uses a standard cost system and has the following standard variable costs.
Problem 11: Materials, Labor and Factory Overhead Variances Julie Corporation uses a standard cost system and has the following standard variable costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute for Requirements #7,8,9
Transcribed Image Text:Froblem 11: Materials, Labor and Factory Overhead Variances
Julie Corporation uses a standard cost system and has the following standard
variable costs.
Transcribed Image Text:Standard Price or Rate
P6.00 per meter
Direct Materials
Direct Labor
Variable Factory Overhead
P3.00 per direct labor hour
Factory overhead is applied to production based on direct labor hours. During
the month of February, 5,000 units were produced and sold to custorners. The
following are the selected production data for the month:
Materials
Direct
Labor
P52,500
Variable
used
P84,000
P75,000
P6,000 U
FOH
P21,000
P18,000
Standard Cost allowed
Actual cost incurred
Materials Quantity variance
Actual direct labor hours
Standard FOH rate per direct labor hour
Standard Price per meter
7,500 hours
P3.00/hr.
P6.00 /m.
The difference between the standard and actual cost per unit produced is PO.15
favorable.
Required: Compute the following:
1. The standard cost per unit of product.
2. The actual cost per unit of product.
3. Standard Quantity per unit.
4. Material Price variance.
5. Standard direct labor rate per hour.
6. Labor Rate variance.
7. Labor Efficiency variance
8. Variable Factory overhead spending variance.
9. Variable Factory overhead efficiency variance.
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