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A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)

A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)
Transcribed Image Text:A company that produces a single product had the following information: Standards Direct labor . 5 hrs P15. 00 per hour The planned production during the month is 3, 000 units and the standard variable overhead rate is P10 per direct labor hour . The company applies variable overhead on the basis of direct labor-hours . The company reported the following results for the actual production during the month. Actual output 3, 200 units Actual direct labor-hours 1, 536 hours Actual direct labor cost P23, 808 Actual variable overhead cost P18 , 432 Compute the following: 1. Direct labor rate variance P (indicate if favorable or unfavorable) 2. Direct labor efficiency variance P (indicate if favorable or unfavorable) 3. Variable overhead rate variance P (indicate if favorable or unfavorable) 4. Variable overhead efficiency variance P (indicate if favorable or unfavorable)
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