(6.) The Filipinas Cement Manufacturing Company uses a standard cost system for its production of cement. Cement is produced by mixing two major raw materials components, A (lime) and B (clay), with water and by adding a third raw materials component C, quantitatively insignificant. Materials standards and cost for the production of 100 tons of output are: Components Tons Cost Percent of Input Amount Quantity Material A 55 P43.00 50% P 2,365 Material B 44 35.00 40% 1,540 Material C 11 25.00 10% 275 Input 110 100% P4,180 @ P38.00/ton Output 100 P4,180 @ P41.80/ton The monthly factory overhead budget for a normal capacity level of 16,500 direct labor hours is as follows: Variable Overhead Fixed Overhead Total P 8,250 12,375 P20,625 To convert 110 tons of raw materials into 100 tons of finished cement requires 500 direct labor hours at P2.50 per direct labor hour or P12.50 per ton. Factory overhead is applied on a direct labor hour basis. Actual data for the month of April: Production of 3,234 tons of finished cement, with costs as follows: Direct labor Fixed factory overhead Variable factory overhead Materials Purchased 15,800 hours @ P2.65 per hour P11,075 P8,490 Materials Requisitioned Quantity Price per Ton Quantity Material A Material B 2,000 tons P44 1,870 tons 1,200 tons 37 1,100 tons 500 tons 24 440 tons Material C No inventories of raw materials or work-in-process at the beginning of the month of April existed. The materials price variance is assumed to be realized at the time of purchase. Required: (a) materials price, mix, and yield variances, (b) direct labor variances, and (c) factory overhead variance using (c1) two-variance method, and (c2) three-variance method. (5.) The Alpha Manufacturing Company employs a standard cost accounting system. The standard factory overhead rate was computed based on normal capacity: Budgeted variable expenses Budgeted fixed expenses TOTAL FOH Rate (P 20,000/ 20,000 hours) P 12,000 8,000 P 20,000 P 1.00 per DLH Two labor hours are required to manufacture each finished unit. During the month, 9,000 units were completed. There were no opening or closing work-in-process inventories. 18,400 labor hours were worked and actual factory overhead was P18,200. Required: An analysis of FOH using (a) two variance method, and (b) three variance method and indicating whether each of the variances is favorable or unfavorable.