Mare Co., the consultant of Marites Co. had summarized the following standard cost data extracted...
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Accounting
Mare Co., the consultant of Marites Co. had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company:
Input required per unit
Standard cost per unit
Standard cost per unit
Direct Materials
6 kg. per unit
P90 per kg.
P540
Direct Labor
5 hours per unit
P50 per hour
P250
Other information follows:
Budgeted factory overhead for the year:
Variable
480,000
Fixed
600,000
The company's normal capacity per month is 400 units
Actual cost materials purchased for the year is P2,342,000
During the year, direct materials purchased is 26,880 kg while direct materials actually used in 24,760 kgs.
Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed
Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours
Actual production during the year 5,150 units
1. Compute for Spending Variance
2. Compute for Variable Overhead Efficiency Variance
3. Compute for Controllable Variance
Please show in a good accounting from. Thank you! I just want to compare my answer.
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