Mandy Co. adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow: Material: 10 kg @ P4.50/kg P45.00 Labor: 6 hours @ P8.50/hr P51.00 The following operating data were taken from the records for November: Units completed 5,800 units Budgeted output 6,000 units Materials purchased 60,000 kg Total actual labor costs P306,600 Actual hours of labor 36,500 hours Material usage variance P2,250 unfavorable Total material variance P450 unfavorable 1. Compute for the actual cost paid per kilogram 2. Compute for the Labor Efficiency Variance
Mandy Co. adopted a
Material: 10 kg @ P4.50/kg P45.00
Labor: 6 hours @ P8.50/hr P51.00
The following operating data were taken from the records for November:
Units completed 5,800 units
Budgeted output 6,000 units
Materials purchased 60,000 kg
Total actual labor costs P306,600
Actual hours of labor 36,500 hours
Material usage variance P2,250 unfavorable
Total material variance P450 unfavorable
1. Compute for the actual cost paid per kilogram
2. Compute for the Labor Efficiency Variance
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