Question
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:
- direct materials
- direct labor
- variable manufacturing overhead variances
please show your solution
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