Workbook and Study Guide in ACC312 Introduction to Management Accounting Study Unit 4: Standard Costing and Variance Analysis Activity 7 LOVE Company manufactures one of its products. It uses standard costing to account the production process. The following information was gathered for your analysis: a. Standard costs per product manufactured were: Direct materials (3 meters @ P3 per meter) P 9 Direct labor (one & half hrs. @ P10 per hour) 15 Variable overhead (P5 per DLH) 7.5 Fixed overhead (P7 per DLH) 10.5 Standard cost per unit P 42 b. Budgeted fixed factory overhead for the month was P104,500. c. A total of 35,000 of material were purchased at a cost of P98,000. d. Materials used in the production were P84,280 e. Actual payroll for direct laborers was P147,225 for 15, 100 hours. f. Variable factory overhead costs were P76, 225. g. Total factory overhead costs incurred P180,445 h. Total output produced was 10,000. Required: Compute the following: a. Direct materials price variance at the time of purchased and direct materials quantity variance. P Less: Direct Materials Price Variance P P Less: Direct Materials Quantity Variance P b. Total materials cost variance