McCoy Company

McCoy Company has the following information available for October when 3,500 units were produced.

Standards:

Material: 3.5 pounds per unit @ P4.50 per pound

Labor: 5.0 hours per unit @ P10.25 per hour

Actual:

Material purchased: 12,300 pounds @ P4.25

Material used: 11,750 pounds

Labor:17,300 direct labor hours @ P10.20 per hour

Required:

1.Refer to McCoy Company. What is the labor rate variance?

2.Refer to McCoy Company. What is the labor efficiency variance?

3.Refer to McCoy Company. What is the material price variance (based on quantity purchased)? MPV = (AP - SP) * AQP

4.Refer to McCoy Company. What is the material quantity variance?