Standard Costing and Variance AnalysisStandard Price or RateP6.00 per meterDirect MaterialsDirect LaborVariable Factory OverheadP3.00 direct labor hourperFactory overhead is applied to production based on direct labor hours. Duringthe month of February, 5,000 units were produced and sold to customers. Thfollowing are the selected production data for the month:MaterialsDirectVariableusedLaborFOHP52,500Standard Cost allowedActual cost incurredP84,000P75,000P6,000 UP21,000P18,000?Materials Quantity varianceActual direct labor hours7,500 hoursStandard FOH rate per direct labor hourStandard Price per meterP3.00/hr.P6.00 /m.The difference between the standard and actual cost per unit produced is P0.15favorable.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 variance8. Variable Factory overhead spending variance.9. Variable Factory overhead efficiency variance.

Name: Standard Costing and Variance AnalysisStandard Price or RateP6.00 per
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Description: Standard Costing and Variance AnalysisStandard Price or RateP6.00 per meterDirect MaterialsDirect LaborVariable Factory OverheadP3.00 direct labor hourperFactory overhead is applied to production based on direct labor hours. Duringthe month of Febru

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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. Dur the month of February, 5,000 units were produced and sold to customers. 1 following are the selected production data for the month: Materials Direct Labor Variabl- used FOH Standard Cost allowed P84 00O P52 500 DO 1

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. Dur the month of February, 5,000 units were produced and sold to customers. 1 following are the selected production data for the month: Materials Direct Labor Variabl- used FOH Standard Cost allowed P84 00O P52 500 DO 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Assume the following information appears in the standard cost card for a company that makes only one product: Standar Quantity or Hours Standar Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 16.90 per hour $ 33.80 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. What is the direct labor rate variance?
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