The following standard costs were developed for one of the products of LT Inc. Materials: 2 lbs. x P8 per lb. P16 Direct labor: 1.5 hours x P16 per hour 24 Variable OH: 1.5 hours x P8 per hour 12 Fixed OH: 1.5 hours x P6 per hour 9 Total standard cost per unit P61 The following information is available regarding the companys operations for the period: Units produced: 42,000 Materials purchased: 100,000 lbs. @ P8.15/lb. Materials used: 92,000 lbs. Direct labor: 68,000 hours costing P1,055,000 Manufacturing OH incurred: Variable P561,000 Fixed P440,000 Budgeted fixed manufacturing overhead for the period is P450,000, and the standard fixed overhead rate is based on expected capacity of 75,000 direct labor hours.

Requirements: 1. Materials price variance 2. Materials usage variance 3. Direct labor rate variance 4. Direct labor efficiency variance

PROBLEM NO. 3. The following standard costs were developed for one of the products of LT Inc. Materials: 2 lbs. x P8 per lb. P16 Direct labor: 1.5 hours x P16 per hour 24 Variable OH: 1.5 hours x P8 per hour 12 Fixed OH: 1.5 hours x P6 per hour 9 Total standard cost per unit P61 The following information is available regarding the company's operations for the period: Units produced: 42,000 Materials purchased: 100,000 lbs. @ P8.15/1b. Materials used: 92,000 lbs. Direct labor: 68,000 hours costing P1,055,000 Manufacturing OH incurred: Variable P561,000 Fixed P440,000 Budgeted fixed manufacturing overhead for the period is P450,000, and the standard fixed overhead rate is based on expected capacity of 75,000 direct labor hours. Requirements: 1. Materials price variance 2. Materials usage variance 3. Direct labor rate variance 4. Direct labor efficiency variance 5. Total overhead variance 6. Four-way overhead variance analysis 7. Three-way overhead variance analysis 8. Two-way overhead variance analysis