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the following standard ca ued by the cost accountin standard costing policy of unit Standard cost

the following standard ca ued by the cost accountin standard costing policy of unit Standard cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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FAITH, the consultant of JOY had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: Input required per unit Standard cost per unit Standard cost per unit 6kg per unit 5 hours per unit Direct materials P90 per kg P540 Direct Labor P50 per hour P250 Other information follows: • Budgeted factory overhead for the year Variable 480,000 Fixed 600,000 The company's normal capacity per month is 400 units. Actual cost materials purchased for the year is P2,342,000 • During the year, direct materials purchased is 26,880 kgs while direct materials actually used is 24,760 kgs Actual labor cost for the year 1,080,000 of which 24,900 direct Labor hours was consumed Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, Factory overhead is based on Labor hours. Actual production during the year is 5,150 units A. Compute for Spending Variance B. Compute for Variable Overhead Efficiency Variance C. Compute for Controllable Variance
Transcribed Image Text:FAITH, the consultant of JOY had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: Input required per unit Standard cost per unit Standard cost per unit 6kg per unit 5 hours per unit Direct materials P90 per kg P540 Direct Labor P50 per hour P250 Other information follows: • Budgeted factory overhead for the year Variable 480,000 Fixed 600,000 The company's normal capacity per month is 400 units. Actual cost materials purchased for the year is P2,342,000 • During the year, direct materials purchased is 26,880 kgs while direct materials actually used is 24,760 kgs Actual labor cost for the year 1,080,000 of which 24,900 direct Labor hours was consumed Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, Factory overhead is based on Labor hours. Actual production during the year is 5,150 units A. Compute for Spending Variance B. Compute for Variable Overhead Efficiency Variance C. Compute for Controllable Variance
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