Determine the following items: h. labor efficiency variance i. actual variable overhead incurred j. standard machine hours allowed k. variable overhead efficiency variance
MagneticCompany has made the following information available for its production facility for the current month. Fixed overhead was estimated at 19,000 machine hours for the production cycle. Actual machine hours for the period were 18,900, which generated 3,900 units.
|
Material purchased (80,000 pieces) |
P314,000 |
|
|
Material quantity variance |
P6,400 |
U |
|
Machine hours used (18,900 hours) |
|
|
|
VOH spending variance |
P50 |
U |
|
Actual fixed overhead |
P60,000 |
|
|
Actual labor cost |
P40,120 |
|
|
Actual labor hours |
5,900 |
|
Magnetic Company’s
|
Direct material |
20 pieces @ P4 per piece |
|
Direct labor |
1.5 hours @ P6 per hour |
|
Variable overhead |
|
|
(applied on a machine hour basis) |
4.8 hours @ P2.50 per hour |
|
Fixed overhead |
|
|
(applied on a machine hour basis) |
4.8 hours @ P3 per hour |
Determine the following items:
|
h. |
labor efficiency variance |
|
i. |
actual variable overhead incurred |
|
j. |
standard machine hours allowed |
|
k. |
variable overhead efficiency variance |
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