At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products: Direct material (3 pounds at P3.20) Labor standard (0.9 hours at P9.00) Variable overhead (0.9 hours at P1.50) Fixed overhead (0.9 hours at P4.00) P9.60 8.10 1.35 3.60 P22.65 Total ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201A are: Units produced Materials purchased Materials used 140,000 units 421,175 Ibs. at P3.30 421,000 lbs. 128,750 hrs at P8.90 Direct labor Fixed overhead Variable overhead P517,525 218,000

At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products: Direct material (3 pounds at P3.20) Labor standard (0.9 hours at P9.00) Variable overhead (0.9 hours at P1.50) Fixed overhead (0.9 hours at P4.00) P9.60 8.10 1.35 3.60 P22.65 Total ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201A are: Units produced Materials purchased Materials used 140,000 units 421,175 Ibs. at P3.30 421,000 lbs. 128,750 hrs at P8.90 Direct labor Fixed overhead Variable overhead P517,525 218,000

Name: VOH efficiency varianceFixed overhead spending varianceFOH volume vari
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Description: VOH efficiency varianceFixed overhead spending varianceFOH volume variance At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20)Labor standard (0.9 hours at P9.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Answer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 7. VOH efficiency variance8. Fixed overhead (FOH) spending variance9. FOH volume variance