PLEASE PROVIDE SOLUTION 47

XXX Company has developed the following standards for one of its products:

STANDARD COSTS SHEET

One Unit of Product:

Materials (4 pounds P5 per pound) P20.00

Direct labor (1 hour P7 per hour) P7.00

Additional notes:

1. Overhead is applied based on direct labor hours.

2. The standard direct labor hours for the variable overhead is 1 hour.

3. The total standard variable cost is P31

The following activity occurred during the month of December:

Materials purchased 4,100 pounds costing P18,800

Materials used 3,640 pounds

Units produced 900 units

Direct labor 1,000 hours costing P7,800

Question 1: What is the material price variance for December?

Group of answer choices

1,700 F

600 U

700 U

63,200 F

Question 2: How much is the variable efficiency variance?

Group of answer choices

(P500)

P400

Cannot be determined using the given.

P700

PLEASE PROVIDE SOLUTION