SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The standard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12). 10. What is the DL Rate variance? 11. What is the DL Time variance? 12. What is the DL total cost variance?
SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The standard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12). 10. What is the DL Rate variance? 11. What is the DL Time variance? 12. What is the DL total cost variance?
SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The standard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12). 10. What is the DL Rate variance? 11. What is the DL Time variance? 12. What is the DL total cost variance?
Transcribed Image Text:PROBLEM#4
SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The
standard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12).
10. What is the DL Rate variance?
11. What is the DL Time variance?
12. What is the DL total cost variance?
The standard overhead cost for a product manufactured by SCOMAN1 Corporation is given below:
PER UNIT
Variable overhead 2hrs@P10/hr
Fixed overhead
P 20
2hrs@P5/hr
Total Standard overhead rate
10
P 30
The company produced 23,000 units and worked 50.000 actual direct labor hours. Overhead is
applied to production on the basis of direct labor hours. The company's normal capacity is 30,000
units or 60,000 hours (i.e.,30,000 units x 2 hrs). Actual variable overhead is P517,500 and actual
fixed overhead is P500,000.
COMPUTE for the following:
13. Controllable variance
14. Volume variance
15. Spending variance
16. Fixed spending variance
17. Efficiency variance
18. Spending variance
Definition Definition Analysis of a difference between planned and actual behavior. After analyzing differences, companies find the reasons for variance so that the necessary steps should be taken to correct that variance.
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