Mamou Company has the following standard material and labor quantities and costs for one unit of Product NMIX #125:

Material 1.85 kilograms @ P157.50 per KILOGRAMS

Labor 0.04 hours @ P540 per hour

During July, the purchasing agent found a good deal on the raw material needed for Product NMIX #125 and bought 100,000 kilograms of material at P141.75 per pound. In July, the company produced 48,000 units of Product NMIX #125 with the following material and labor usage:

Material 95,000 kilograms

Labor 2,200 hours @ P544.40 (due to a renegotiated labor contract)

Required:

a. What is the standard quantity of material and the standard labor time for July?

b. Calculate the material and labor variances for July.

c. Did the purchasing agent really make a good deal on the raw material? Justify your answer.