Standard Price or Rate Direct Materials Direct Labor Variable Factory Overhead P6.00 per meter 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 customers. The following are the selected production data for the month: Variable Standard Cost allowed Actual cost incurred Materials Quantity variance Actual direct labor hours Standard FOH rate per direct labor hour Materials used P84,000 P75,000 P6,000 U Direct Labor P52,500 FOH P21,000 P18,000 7,500 hours P3.00/hr. Stendend
Standard Price or Rate Direct Materials Direct Labor Variable Factory Overhead P6.00 per meter 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 customers. The following are the selected production data for the month: Variable Standard Cost allowed Actual cost incurred Materials Quantity variance Actual direct labor hours Standard FOH rate per direct labor hour Materials used P84,000 P75,000 P6,000 U Direct Labor P52,500 FOH P21,000 P18,000 7,500 hours P3.00/hr. Stendend
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
Answer number 4, 5 and 6
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd075436c-885d-4309-af25-0c00cdebc4cb%2F1b40d6b1-27c1-43a5-b443-7f3d89524ac5%2Ffmocjow_processed.jpeg&w=3840&q=75)
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.
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.
This is a popular solution!
Trending now
This is a popular solution!
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 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
![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
![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 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
![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
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: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning