Present your answer as ex. 1000 FAVORABLE OR 1000 UNFAVORABLE if applicable.

MARIETTA CO. adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow:

Material: 10 kg @ P4.50/kg	P45.00
Labor: 6 hours @ P8.50/hr	P51.00

The following operating data were taken from the records for November:

Units completed	5,800 units
Budgeted output	6,000 units
Materials purchased	60,000 kg
Total actual labor costs	P306,600
Actual hours of labor	36,500 hours
Material usage variance	P2,250 unfavorable
Total material variance	P450 unfavorable

REQUIREMENTS:

1. Compute for the actual cost paid per kilogram.

2. Compute for the Labor Efficiency Variance.

Present solutions in good accounting form. Avoid parenthetical solutions.