Complete solution and answer

Love company manufactures one of its products. it uses standard costing to account the production process. the following information was gathered for your analysis:

a. Standard costs per product manufacture were:

Direct materials (3 meters @ P3 per meter)P9

Direct Labor (one & half hrs. @ 10 per hour)15

Variable overhead (P5 per DLH)7.5

Fixed overhead (P7 per DLH)10.5

b. Bugeted fixed factory overhead for the month was P104,500.

C. A total of 35,000 of material were purchased at a cost of P98,000.

d. Materials used in the production were P84,280.

e. Actual Payroll for direct laborers was P147,225 for 15,100 hours.

f. Variable factory overhead costs were P76,225.

g. Total factory overhead costs were P180,445.

h. Total outout produced was 10,000.

Required: Compute the following:

a. Direct materials price variance at the time of purchased and direct materials quantity variance.

b. Total materials cost variance.

c. Direct Labor rate variance and direct labor efficiency variance.

D. Total direct labor cost variance.

e. Factory overhead variance using one-way method.

f. Factory overhead variance using two way method.

g. Factory Overhead variance sing three-way method.

h. Factory overhead variance using four-way method.