The company has been able to produce 30,000 cups of milk tea, with cost as follows:

Direct Labor 2,450 hours at P150,000

Variable Overhead 23,000

Fixed Overhead 40,000

	Materials Purchased
	Quantity (liters)	Cost / Kg
Milk	15,000	P 65.00
Tea	1,600	P 105.00
Sugar	1,700	P 48.00

No inventories of work in process at the beginning of the month existed. No beginning inventory of materials as well because the company practices Just in Time (JIT) principle. The amount purchased is the amount to be used in making milk tea.

FIND:

Material Mix Variance

Labor Rate Variance

Labor Efficiency Variance

FOH Spending Variance

FOH Efficiency Variance