1. Yolly Manufacturing uses a standard cost accounting system. In July 2019, it accumulates the following data relative to jobs tarted and completed;

Cost and Production DataActualStandard

Raw Materials:

Units Purchased17,700

Units Used17,70018,000

Unit CostP3.40P3.00

Direct Labor:

Hours worked2,9503,000

Hourly rateP11.80P12.00

Manufacturing Overhead:

IncurredP87,500

AppliedP90,000

Manufacturing overhead was applied on the basis of direct labor hours. Normal capacity for the month was 2,800 direct labor hours. At normal capacity, budgeted overhead costs were: variable P56,000 and fixed P28,000. Jobs finished during the month were sold for P240,000, selling and administrative expenses were P25,000.

Required:

Compute all of the variances for direct materials, direct labor, and manufacturing overhead.

2. Baliwag Chemicals purchases coconut and processes it into products such as copra, vinegar and alcohol. In July 2019, Baliwag purchased coconut for P40,000. Conversion costs of P60,000 were incurred up to split-off point, at which time two salable products were produced: copra and vinegar. Vinegar can be further processed into alcohol.

The July 2019 production and sales data are as follows:

ProductionSalesSales Price per Ton

Copra1,200 tons1,200 tonsP 50 per ton

Vinegar800 tons

Alcohol500 tons500 tonsP200 per ton

All 800 tons of vinegar were further processed, at an incremental cost of P20,000, to yield 500 tons of alcohol. There were no beginning or ending inventories of copra, vinegar, or alcohol in July.

There is an active market for vinegar. Baliwag Products could have sold all of its July productions of vinegar at P75 per ton.

Required:

Allocate the joint costs of P100,000between copra and vinegar under the:

a. Sales value at split-off point method

b. Physical measure (tons)

c. Net Realizable Value (NRV) method