Standard Costing and Variance Analysis Standard Price or Rate P6.00 per meter Direct Materials Direct Labor ariable Factory Overhead P3.00 per direct labor hour ctory overhead is applied to production based on direct labor hours. Durin month of February, 5,000 units were produced and sold to customers. Th
Standard Costing and Variance Analysis Standard Price or Rate P6.00 per meter Direct Materials Direct Labor ariable Factory Overhead P3.00 per direct labor hour ctory overhead is applied to production based on direct labor hours. Durin month of February, 5,000 units were produced and sold to customers. Th
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
Related questions
Question
Solve 7-9
![Standard Costing and Variance Analysis
Standard Price or Rate
P6.00 per meter
Direct Materials
Direct Labor
Variable Factory Overhead
P3.00 direct labor hour
per
Factory overhead is applied to production based on direct labor hours. During
the month of February, 5,000 units were produced and sold to customers. Th
following are the selected production data for the month:
Materials
Direct
Variable
used
Labor
FOH
P52,500
Standard Cost allowed
Actual cost incurred
P84,000
P75,000
P6,000 U
P21,000
P18,000
?
Materials Quantity variance
Actual direct labor hours
7,500 hours
Standard FOH rate per direct labor hour
Standard Price per meter
P3.00/hr.
P6.00 /m.
The difference between the standard and actual cost per unit produced is P0.15
favorable.
Required: Compute the following:
1. The standard cost per unit of product.
2. The actual cost per unit of product.
Standard Quantity per unit.
4. Material Price variance.
3.
5.
6. Labor Rate variance.
Standard direct labor rate per hour.
7. Labor Efficiency variance
8. Variable Factory overhead spending variance.
9. Variable Factory overhead efficiency variance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb99c7712-b96c-49d1-9bc6-78d47604a486%2Fe9160c21-d284-48c2-a9ae-042d7f53614a%2Frp8cliu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Standard Costing and Variance Analysis
Standard Price or Rate
P6.00 per meter
Direct Materials
Direct Labor
Variable Factory Overhead
P3.00 direct labor hour
per
Factory overhead is applied to production based on direct labor hours. During
the month of February, 5,000 units were produced and sold to customers. Th
following are the selected production data for the month:
Materials
Direct
Variable
used
Labor
FOH
P52,500
Standard Cost allowed
Actual cost incurred
P84,000
P75,000
P6,000 U
P21,000
P18,000
?
Materials Quantity variance
Actual direct labor hours
7,500 hours
Standard FOH rate per direct labor hour
Standard Price per meter
P3.00/hr.
P6.00 /m.
The difference between the standard and actual cost per unit produced is P0.15
favorable.
Required: Compute the following:
1. The standard cost per unit of product.
2. The actual cost per unit of product.
Standard Quantity per unit.
4. Material Price variance.
3.
5.
6. Labor Rate variance.
Standard direct labor rate per hour.
7. Labor Efficiency variance
8. Variable Factory overhead spending variance.
9. Variable Factory overhead efficiency variance.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning