In good accounting form, compute for the: 1. Spending variance 2. Variable overhead efficiency variance 3. Controllable variance Marissa co., the consultant of marisol 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 hrs 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 is 24,760 kgs >Actual labor costs for the year 1,080,000 of which 24,900 direct labor hourse 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
In good accounting form, compute for the:
1. Spending variance
2. Variable overhead efficiency variance
3. Controllable variance
Marissa co., the consultant of marisol 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
| 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 hrs 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 is 24,760 kgs
>Actual labor costs for the year 1,080,000 of which 24,900 direct labor hourse 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
Step by step
Solved in 2 steps with 4 images
