354 Chapter 10 23. Information on Benning Company's direct material costs is as follows: Actual units of direct materials used. Actual direct materials cost Standard price per unit of direct materials P20,000 P40,000 P 2.10 Direct materials efficiency variance - favorable.... P 3,000 What was Benning's direct material price variance? a. P1,000 favorable b. P1,000 unfavorable 24. C. P2,000 favorable d. P2,000 unfavorable Information on Bisset Company's direct material costs is as follows: Standard unit price....... P3.60 Actual quantity purchased. 1,600 Standard quantity allowed for actual production... 1,450 Materials purchase price variance. P240 What was the actual purchase price per unit, rounded to the nearest centavo? a. P3.06 b. P3.11 C. P3.45 d. P3.75 25. Holmes Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Type-K table is P7.80 based on six square feet of vinyl at a cost of P1.30 per square foot. A production run of 1,000 tables in January 2018 resulted in usage of 6,400 square feet of vinyl at a cost of P1.20 per square foot, a total cost of P7,680. The usage variance resulting from the above production run was a. P120 favorable. b. P480 unfavorable. C. d. P520 unfavorable. P640 favorable. 26. Fowler Corp. uses a standard cost system. Direct labor information for product JRE for the month of October is as follows: Standard rate... Actual rate paid Standard hours allowed for actual Production Labor efficiency variance. P6.00 per hour P6.10 per hour 1,500 hours P600 unfavorable Standard Costs and Operating Performance Measures 355 What are the actual hours worked? a. 1,400 b. 1,402 C. 1,598 d. 1,600 27. The Sta. Ana Company has a budgeted normal monthly capacity of 5,000 labor hours with a standard production of 4,000 units at this capacity. Standard costs are: Materials Labor Factory overhead at normal capacity: Fixed expenses Variable expenses 2 kilos at P1.00 P8.00 per hour P5.000.00 P1.50 per labor hour During September, actual factory overhead totaled P11,250, and 4,500 labor hours cost P33,750. Production during the month was 3,500 units using 7,200 kilos of materials at a cost of P1.02 per kilo. The materials price variance during September was: a. P1,440 unfavorable. b. P204 favorable. C. P140 favorable. d. P3,440 unfavorable. e. None of the above. 28. Refer to Question No. 27. The labor efficiency variance was: a. P2,250 unfavorable. b. P1,000 unfavorable. C. P2,187.50 favorable. d. P62.50 favorable. e. None of the above. 29. Leia Company's direct-labor costs for the month of January 2013 were as follows: Actual direct-labor hours.... Standard direct-labor hours. 20,000 21,000 Direct-labor rate variance - unfavorable....... P3,000 Total Payroll.. What was Leia's direct-labor efficiency variance? a. P6,000 favorable. b. P6,150 favorable. C. P126,000 P6,300 favorable. d. P6,450 favorable