PROBLEM 1

MingMing Corporation uses a standard cost system and has established the following standards for one unit of product MingPink:

Standard QuantityStandard Price

Direct Materials5 kilogramsPhp 2.65 per kilogram

Direct Labor.25 hourPhp 110 per hour

During August, the company purchased and used 94,250 kilograms (at P 2.70 per kilogram) to produce 18,570 units of MingPink. Accordingly, the units were manufactured consuming 4,750 hours of direct labor paid at P 115.00 per hour

Please help me complete here:

For direct material, compute for the following:

(a) material price variance=

(b) material quantity variance =

(c) material spending variance.=

For direct labor, compute the following:

(d) direct labor rate variance=

(e) direct labor efficiency variance =

(f) direct labor spending variance =

Indicate whether computed variance is favorable or unfavorable with the amount.

PROBLEM 2

The following standards for variable overhead have been established for Mabuhay Company that makes only one product:

Standard hours per unit of output5.40 hours

Standard variable overhead rateP 14.00 per hour

The following data pertain to operations for the last month:

Actual hours9,100 hours

Actual total variable overhead costP 125,090.00

Actual output1,670 units

Please help me for the following:

(a) variable manufacturing overhead rate variance =

(b) variable manufacturing overhead efficiency variance =

(c) variable manufacturing overhead spending variance.=

Indicate whether computed variance is favorable or unfavorable together with the amount.

PROBLEM 3

Kambal Corporation uses a standard cost system and has established the following standards for its primary direct material for product Twinnie.

Standard Quantity Standard Price

Direct Materials 15 pounds Php 3.50 per pound

During July, the company purchased 294,520 pounds of its primary direct material at P 3.30 per pound - of the material purchased, 25% remained in inventory at the end of the month.

Kambal produced 16,500 units of product Twinnie for July.

Please help me for the following:

(a) material price variance =

(b) material quantity variance =

Indicate whether computed variance is favorable or unfavorable together with the amount.