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1. Standard cost per unit Materials 7 kilos at P3.50 per kilo Labor 8 hours at P1.75 per kilo Overhead: fixed P1.15 per hour or P9.20 per unit Variable PO.85 per hour or P6.80 per unit 2. Overhead applied on direct labor hours 3. Actual performance (1 month) a. Volume produced b. Labor hours c. Overhead d. Material cost e. Labor cost f. Materials used 800 6,300 P13,200 P3.45 per kilo P1.80 per kilo 4,800 kilos Total material variance is a. 2,800 favorable b. 2,800 unfavorable c. 3,000 unfavorable d. 3,040 favorable