Direct materials (10 lbs. at PO.50 per lb.) Direct manufacturing labor (2hrs. At P10 per hr.) Variable manufacturing overhead (3 machines hrs. at P5 per hr.) Total variable cost per unit P5 20 15 P40 Fixed manufacturing costs for 2012 are budgeted to be P400,000. Selected actual results and variances for 2012 are: Production output Direct materials inventory 1/1/2012 Direct materials inventory 12/31/2012 Materials price variance Materials efficiency variance Manufacturing labor price variance Manufacturing labor efficiency variance Variable manufacturing overhead spending variance Variable manufacturing overhead efficiency variance Fixed manufacturing overhead spending variance 100,000 units 0 100,000 lbs. P 24,000 U P 50,000 U P 50,000 F P100,000 U P 50,000 F P150,000 U P 30,000 U