During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct material at a cost of P2.20 per pound. The direct material standard requires 4 pounds of material per unit of product at a standard price of P2.00 per pound. 5. The material quantity variance is: a. P880 unfavorable c. P800 favorable d. 800 unfavorable b. P880 favorable The standard direct labor cost for a product is 3 hours at P6 per hour. Budgeted production was 10,000 units for the year and actual production was 12,000 units. Actual direct labor cost was P210,375 for 38,250 hours. 6. Compute for (1) the labor rate variance and (2) labor efficiency variance (1) P19,125 F and P13,500 U (1) P19,125 U and P13,500 F (1) P19,125 F and P49,500 U (1) P19,125 U and P49,500 F

During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of direct material at a cost of P2.20 per pound. The direct material standard requires 4 pounds of material per unit of product at a standard price of P2.00 per pound. 5. The material quantity variance is: a. P880 unfavorable c. P800 favorable d. 800 unfavorable b. P880 favorable The standard direct labor cost for a product is 3 hours at P6 per hour. Budgeted production was 10,000 units for the year and actual production was 12,000 units. Actual direct labor cost was P210,375 for 38,250 hours. 6. Compute for (1) the labor rate variance and (2) labor efficiency variance (1) P19,125 F and P13,500 U (1) P19,125 U and P13,500 F (1) P19,125 F and P49,500 U (1) P19,125 U and P49,500 F

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Description: During August, 2021, a company produced 1,000 units of a product using 3,600 pounds of directmaterial at a cost of P2.20 per pound. The direct material standard requires 4 pounds of material perunit of product at a standard price of P2.00 per pound.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...

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