The production records of Prince Company for the month of June shows the following:

Total Manufacturing Cost Variance P 3,840 U Rate Variance 8,710 F

Total material cost variance 2,975 U Total Labor cost variance 4,200 F

Price variance 2,125 U

Other Data:

• The company paid P0.10 more than the standard price.
• Three pieces of materials are required per unit of product.
• An over absorbed capacity of 100 units of product was noted when actual production was compared with the normal volume of 6,900 units.
• Payroll showed total labor cost of P183,680.
• Workers are usually paid at an average of P4.40, though the records showed that the company paid less than this during the month.
• Standard overhead rate amounts to P5 per direct labor hours, 40% of which is fixed.
• 40% of the Actual Overhead is fixed.