Topic: Variance Analysis PROBLEM#4SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. Thestandard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12).10. What is the DL Rate variance?11. What is the DL Time variance?12. What is the DL total cost variance?The standard overhead cost for a product manufactured by SCOMAN1 Corporation is given below:PER UNITVariable overhead 2hrs@P10/hrFixed overheadP 202hrs@P5/hrTotal Standard overhead rate10P 30The company produced 23,000 units and worked 50.000 actual direct labor hours. Overhead isapplied to production on the basis of direct labor hours. The company's normal capacity is 30,000units or 60,000 hours (i.e.,30,000 units x 2 hrs). Actual variable overhead is P517,500 and actualfixed overhead is P500,000.COMPUTE for the following:13. Controllable variance14. Volume variance15. Spending variance16. Fixed spending variance17. Efficiency variance18. Spending variance

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SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The standard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12). 10. What is the DL Rate variance? 11. What is the DL Time variance? 12. What is the DL total cost variance?

SCOMAN1 Company produced 4,000 units of product. Each unit requires 3 standard hours. The standard labor rate is P16 per hour. Actual direct labor for the period was P120,000 (10,00 x P12). 10. What is the DL Rate variance? 11. What is the DL Time variance? 12. What is the DL total cost variance?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 31P: Misterio Company uses a standard costing system. During the past quarter, the following variances...

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