1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance EMARISSA Co., the consultant of MARISOL Co. Had aummarized the following atandard costdats extracted from the historical recorda and performance rep orts issued by the coat accountingdepartment in the prior yesr analyais and evaluation of the atandard costing policy of theCompany.Standard cost perStandard coat perInput required perunitunitunitp90 per kgP540Direct MaterialsDirect Labor6 kg per unit5 hours per unitP50 per hourP250Other information follows:Budgeted factory overhead for the year:N W t tt480,000VariableFixedtte ck600,00Actual cost materials purchased for the vear is P 2.342.000- During the year direct materials purchased is 26,880 kg while direct materials actually usedis 24.760 ke- 1,080.000 of which 24,900 direct labor hours was consumedActual labor costs for the vear-Actual factory overhead amounted to 1.320.00, 63% of whicch is fixed cost, FOH is bssedon labor hours-Actual production during the year 5,150 units

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Description: 1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance EMARISSA Co., the consultant of MARISOL Co. Had aummarized the following atandard costdats extracted from the historical record

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EMARISSA Co., the consultant of MARISOL Co. Had summxized the following standard cost data extracted from the historical records and perfomance reports issued by the cost accounting department in the prior year analysis and evaluation of the standard costing policy of the Company. Standard cost per Standard cost per Input required per unit unit unit Direct Materials Diret Labor 6 kg per unit 5 hours per unit Р90рer kg P50 per hour P540 P250 Other information follows: Budgeted factory overhead for the year. 480,000 600, Variable Fixed The company 's nomal capacity per month in 400 units Actual cost materials purchased for the year is P 2,342,000 During the year direct materials purchased is 26,880 kg while direct materials actuallly used i0 24,760 kg 7 Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed Actual factory overhead amounted to 1,320,00, 65% of which is fixed cost, FOH is based on labor hours * Actual production during the year 5,150 unitA

EMARISSA Co., the consultant of MARISOL Co. Had summxized the following standard cost data extracted from the historical records and perfomance reports issued by the cost accounting department in the prior year analysis and evaluation of the standard costing policy of the Company. Standard cost per Standard cost per Input required per unit unit unit Direct Materials Diret Labor 6 kg per unit 5 hours per unit Р90рer kg P50 per hour P540 P250 Other information follows: Budgeted factory overhead for the year. 480,000 600, Variable Fixed The company 's nomal capacity per month in 400 units Actual cost materials purchased for the year is P 2,342,000 During the year direct materials purchased is 26,880 kg while direct materials actuallly used i0 24,760 kg 7 Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed Actual factory overhead amounted to 1,320,00, 65% of which is fixed cost, FOH is based on labor hours * Actual production during the year 5,150 unitA

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 3P: Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on...

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