The standard manufacturing corporation uses a standard cost system in accounting for the cost of its only product. The standard cost per unit (based on 10,000 units production) was set up as follows: Direct materials, 10kgs @ P11/kg Direct labor, 8 hours @50 per hour Factory overhead, 8 hours @15 per hour The following data on the operations appear in the company’s record for the month of July: Units completed during the month, 8,000 units Units in process at the end of the month, with 100% materials but half completed, 1,000 units Direct material used, 95,000 kgs @10 per kg Direct labor, P3,510,000 at a rate of P54 Actual Overhead for the month P985,00 Compute for the variable efficiency variance. Indicate whether favorable or unfavorable
The standard manufacturing corporation uses a
Direct materials, 10kgs @ P11/kg
Direct labor, 8 hours @50 per hour
Factory
The following data on the operations appear in the company’s record for the month of July:
Units completed during the month, 8,000 units
Units in process at the end of the month, with 100% materials but half completed, 1,000 units
Direct material used, 95,000 kgs @10 per kg
Direct labor, P3,510,000 at a rate of P54
Actual Overhead for the month P985,00
Compute for the variable efficiency variance. Indicate whether favorable or unfavorable
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