Led ent. produces many products for household use. Company sells products to storekeepers as well as to customers. Detergent-DX is one of the products of Led ent. It is a cleaning product that is produced, packed in large boxes, and then sold to customers and storekeepers. Led ent. uses a traditional standard costing system to control costs and has established the following materials, labor and overhead standards to produce one box of Detergent-DX: Direct materials; 1.5 pounds at P12 per pound: P18.00 Direct labor; 0.6 hours P4 per hour: P14.40 Variable manufacturing overhead; 0.6 hours at P5.00: P3.00 During August 2020, company produced and sold 3,000 boxes of Detergent-DX. 8,000 pounds of direct materials were purchased P11.50 per pound. Out of these 8,000 pounds, 6,000 pounds were used during August. There was no inventory at the beginning of August. 1600 direct labor hours were recorded during the month at a cost of P40,000. The variable manufacturing overhead costs during August totaled P7,200. Required: (Show solutions) 1. Compute materials price variance and materials quantity variance. (Assume that the materials price variance is computed at the time of purchase.) 2. Compute direct labor rate variance and direct labor efficiency variance. 3. Compute variable overhead spending variance and variable overhead efficiency variance. Note: State whether it is favorable or unfavorable.