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UC Company produces a single product. The standard costs for one unit of product are as follows: Direct material: 6 kilograms at Php0.50 per kilogram

UC Company produces a single product. The standard costs for one unit of product are as follows:

Direct material: 6 kilograms at Php0.50 per kilogram = Php3

Direct labor: 1.8 hours at Php10 per hour = Php18

Variable manufacturing overhead: 1.8 hours at Php5 per hour 9

Total standard variable cost per unit Php30

Note: Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

2,000 units were produced in June with the following costs:

Material purchased: 18,000 kilograms at Php0.60 per kilogram = Php10,800

Material used in production: 14,000 kilograms

Direct labor: 4,000 hours at Php9.75 per hour = Php39,000

Variable manufacturing overhead costs incurred Php20,800

Direct material: 6 kilograms at Php0.50 per kilogram Php3

Direct labor: 1.8 hours at Php10 per hour 18

Variable manufacturing overhead: 1.8 hours at Php5 per hour 9

Total standard variable cost per unit Php30

Required: Compute the following:

  1. direct materials
  2. direct labor
  3. variable manufacturing overhead variances

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