STANDARD COSTING PROBLEM

SINEBAK PHARMA CO. uses a standard cost accounting system. During March, 2020, the company reported the following manufacturing variances:

Materials price varianceP1,600 F

Materials quantity variance2,400 U

Labor price variance600 U

Labor quantity variance2,200 U

Overhead controllable500 F

Overhead volume3,000 U

In addition, 15,000 units of product were sold at P18 per unit. Selling expenses P5,000 and Administrative expenses for the month were 2/3 of the operating expenses.

The standard cost per unit produced were:

Direct materialsP8

Direct labor4

Factory overhead2

Corporate Income Tax Rate = 30%

Instructions:

Make an income statement for management for the month ending March 31, 2020.