Ashtoink Corporation manufactures a product with the following standard costs:17 yards at P1.64 per yard7 hours at P5.5 per hour7 direct labor hours at P14; ratio of variable tofixed factory overhead is 3:1Direct materialsDirect laborFactory overheadTotal standard cost per unit of outputStandards are based on normal monthly capacity of 2,400 direct labor hours. The following information pertains toNovember:Units produced - 450Direct materials purchased - #25,840 (19,000 yards at 1.61/yard)Direct materials used- $12,558Direct labor - 24,336 (at #7.80/hr.)Actual factory overhead - $52,150 (42,150 variable)P27.88#38.5#98#164.38Answer the following and show your solution:a) Compute for the total manufacturing cost variance to be analyzed.b) Compute for the total materials cost variance to be analyzed. Compute for materials usage price andquantity variances.c) Compute for the total direct labor cost variance to be analyzed. Compute for labor rate and efficiencyvariances.

Name: Ashtoink Corporation manufactures a product with the following standa
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Description: Ashtoink Corporation manufactures a product with the following standard costs:17 yards at P1.64 per yard7 hours at P5.5 per hour7 direct labor hours at P14; ratio of variable tofixed factory overhead is 3:1Direct materialsDirect laborFactory overhea

Given details for standard costs: Standard costs Cost (in P) Remark Direct materials 27.88…

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Accounting

Answer the following and show your solution: a) Compute for the total manufacturing cost variance to be analyzed. b) Compute for the total materials cost variance to be analyzed. Compute for materials usage price and quantity variances. c) Compute for the total direct labor cost variance to be analyzed. Compute for labor rate and efficiency variances.

Answer the following and show your solution: a) Compute for the total manufacturing cost variance to be analyzed. b) Compute for the total materials cost variance to be analyzed. Compute for materials usage price and quantity variances. c) Compute for the total direct labor cost variance to be analyzed. Compute for labor rate and efficiency variances.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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