FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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PRESENT YOUR ANSWER AS: (10) IF FAVORABLE OR 10 IF
UNFAVORABLE.

The Standard manufacturing corporation uses a standard
cost
system in accounting for the cost of its only product.
The standard cost per unit (based on 10,000 units
production) was set up as follows: Direct materials, 10 kgs
@P11/kg.; Direct labor, 8 hours @ p50 per hour; Factory
overhead, 8 hours @ P15 per hour. The following data on
the operations appear in the company's record for the
month of July: Units completed during the month, 8,000
units; units in process at the end of the month, with 100%
materials but half completed, 1,000 units; Direct materials
used, 95,000 kgs @ P10 per kg; Direct labor, P3,510,000 at
a rate of P54; Actual overhead for the month P985,000.
Compute for the Variable efficiency variance. Indicate whether favorable or unfavorable.

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