Standard costing and variance analysis

14. Materials, labor, and overhead costs variances. The following data are taken from the company's flexible budget for the current quarter: Normal activity (direct labor hours) 9,000 Variable overhead cost at 9,000 DLH P 265,200 Fixed overhead cost P 54,000 A standard cost card showing the standard cost to produce one unit of the company's product is given as follows: Direct materials 6 lbs. at P3 P 18.00 Direct labor 2 hours at P12 24.00 Overhead 120% of DL cost 28.80 Standard cost per unit P70.80 During the quarter, the company produced 4,800 units of product and incurred the following costs: Materials purchased, 30,000 lbs. at P2.90 P 87,000 Materials used in production (in lbs.) 29,050 Direct labor cost incurred, 10,000 hours at P12.20 122,000 Variable overhead cost incurred 230,000 Fixed overhead cost incurred 55,100 Required: Compute the following 1. Materials variances using the 2-way method 2. Direct labor variances using the 2-way method 3. Total overhead variance 4. Variable overhead spending variance and efficiency variance 5. Fixed overhead spending, idle capacity and efficiency variance