Compute the following:

A. Materials Flexible Budget Variance

B. Labor Flexible Budget Variance

C. Variance Overhead Flexible Budget Variance

D. Fixed Overhead Flexible Budget Variance

2. Accounting for Variances/Journal Entries to record the following:

A. Purchase of Direct Materials

B. Issuance of Materials to Production

C. Direct Labor Costs

D. Variable Overhead

E. Fixed Overhead

F. Overhead Variances and Closing overhead accounts.

G. Closing/disposition of overhead variances.

Show solution/computation.

Exercise V Extreme Corporation has the following a standard cost sheet, various actual and budgeted operating data for the month of January 20xx Standard Cost Sheet Description Direct materials Standard Standard Standard Price Usage Cost/Unit P 15.00/kg. 10 kgs. P150.00 Direct labor P 60.00/hr. 2 hours 120.00 Variable overhead P100.00/hr. 2 hours 200.00 Fixed Overhead P 80.00/hr. 2 hours 160.00 P630.00 Standard cost per unit Actual operating data for the period: Units produced: Materials purchased: Materials used: Direct labor costs: Variable overhead: Fixed overhead: 20,000 units 210,000 kilograms purchased @ P15.50/kg 205,000 kg 39,000 hours @ P61.00 per hour P4,100,000 P3,000,000 Budgeted Fixed Overhead for the period: Budgeted amount: P3,100,000 Budgeted no. of hours: 38,750 hours Required: 1. Compute the following: a. Materials Flexible Budget Variance b. Labor Flexible Budget Variance c. Variable Overhead Flexible Budget Variance d. Fixed Overhead Flexible Budget Variance