managerial accounting

ACTIVITY ABC Company has established standard costs for the furniture department, in which one (1) size of the cabinet is made. The standard costs of producing one of these cabinets are shown below: Direct material (Lumber) 50 board feet at P4.00 per foot P200.00 Labor standard 8 hours at P10.00 per hour 80.00 Variable overhead 8 hours at P5.00 per hour 40.00 Fixed overhead 8 hours at P3.00 per hour 24.00 Total P344.00 During January 201A, 500 cabinets were produced. The actual cost of operations during the month are shown below: Direct materials purchased (30,000 board P123,000 feet at P4.10 per board foot) Direct materials used (24,000 board feet) Direct labor (4,200 hours at P9.50 per hour) 39,900 Total variable overhead cost 22,000 Total fixed overhead cost 11,000 The budgeted overhead for the furniture department based on a normal monthly activity of 4,500 hours is P36,000, of which P22,500 is variable and P13,500 is fixed overhead. Required: 1. Material price variance 2. Material usage/quantity variance 3. Labor rate variance 4. Labor efficiency variance 5. Variable overhead rate variance 6. Variable overhead efficiency variance 7. Fixed spending variance 8. Fixed volume variance