Question
Sagutanmokobaybeh Company has developed the following standards for one of its products: STANDARD COSTS SHEET One Unit of Product: Materials (4 pounds P5 per pound)
Sagutanmokobaybeh 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?
Question 2: How much is the variable efficiency variance?
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?
Question 2: How much is the variable efficiency variance?
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