PROBLEM $1$

VERGEL Company began operations in $2016.$ In $2017,$ the company manufactured only one product. The

$2017$ standard cost per unit is as follows:

The overhead cost per unit was calculated from the following annual overhead cost budget of $60,000$ units:

Variable Overhead cost:

Total variable overhead costs

Fixed overhead costs:

Total budgeted overhead cost at $60,000$ units

Actual data for the month of December are as follows:

Production $-4,900$ units

Materials purchased $-10,000$ kilos at $P1\mathrm{.}90$ per kilo

Materials used in production $-9,900$ kilos

Direct labor $-8,000$ hours at $P4\mathrm{.}10$ per hour

Variable overhead cost incurred $-$ P $15,000$

Fixed overhead costs incurred $-$ P $7,000$

Required:

Compute and analyze the materials, labor, and factory overhead variances from standard costs.