Chapter 13 Standard Costing 427 Problem 3 Golden Shower Company has a budgeted normal monthly capacity of 5,000 Inbor hours with a standard production of 4,000 units at this capacity. Standard costs are: Materials 2 kilos at P1.00 Labor P8.00 per hour Factory overhead at normal capacity Fixed expenses P5,000 Variable expenses P 1.50 per labor hour During January, actual factory overhead total P11,250 and 4,500 labor hours cost 33,750. Production during the month was 3,500 units using 7,200 kilos of materials at cost of P1.02 per kilo Required: ees for materials laboripverhead. 1. Variable spending variance 2. Fixed spending oduct and provides you with the following variance 155,000 3. Variable efficiency variance 4. Volume variance P4.00