Activity 1 Fitzhugh Company has the following information available for the current year: Standard: Material 3.5 feet per unit @ P2.60 per foot 5 direct labor hours @ P8.50 per unit Labor Actual: 95,625 feet used (100,000 feet purchased @ P2.50 per foot) 122,400 direct labor hours incurred per unit @ P8.35 per hour Material Labor 25,500 units were produced Require: Compute the following a. Material purchase price variance b. Material quantity variance c. Labor rate variance d. Labor efficiency variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Activity 1
Fitzhugh Company has the following information available for the current year:
Standard:
Material
Labor
3.5 feet per unit @ P2.60 per foot
5 direct labor hours @ P8.50 per unit
Actual:
Material
Labor
95,625 feet used (100,000 feet purchased @ P2.50 per foot)
122,400 direct labor hours incurred per unit @ P8.35 per hour
25,500 units were produced
Require: Compute the following
a. Material purchase price variance
b. Material quantity variance
c. Labor rate variance
d. Labor efficiency variance
Transcribed Image Text:Activity 1 Fitzhugh Company has the following information available for the current year: Standard: Material Labor 3.5 feet per unit @ P2.60 per foot 5 direct labor hours @ P8.50 per unit Actual: Material Labor 95,625 feet used (100,000 feet purchased @ P2.50 per foot) 122,400 direct labor hours incurred per unit @ P8.35 per hour 25,500 units were produced Require: Compute the following a. Material purchase price variance b. Material quantity variance c. Labor rate variance d. Labor efficiency variance
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