All costs incidental to materials procurement and handling until they are issued are charged to the materials account by Cruz Mfg. Co. at a rate predetermined for each of the departments involved.

For 2018, the estimated/budgeted departmental costs are given:

Purchasing department------------------------------------------------------ P350,000

Receiving and Inspection Dept. ----------------------------------------------249,000

Materials department----------------------------------------------------------- 166,000

Accounting department (20% is estimated to be related

to processing of payments for materials.)--------------------------------- 590,000

Purchases for 2018 were estimated to amount to P 10,000,000 for more or less 8,300,000 units to be ordered 50 times.

Actual purchases for 2018 amounted to P11,200,000 for total of 8,000,000 units in 52 orders. Costs incurred by the four given departments were as follows:

Purchasing department--------------------------------------------------- P360,000

Receiving and inspection department---------------------------------- 256,000

Materials department --------------------------------------------------------156,000

Accounting department (20% is estimated to be related

to processing of payments for materials. -------------------------------580,000

Required:

a. Determine the applied acquisition costing rates by department.

b. How much is the applied material handling cost per department?

c. How much is the material handling variance?