Reference no: EM132715634

On August 1, Rosa Co. had work in process inventory of 1,500 units which were 75% complete as of that date. During the month, the company started in process 5,000 units of product, 4,000 of which were completely finished during the period. The unfinished units were 2/5 complete of the end of the month. Other data pertaining to the month's production activities follow:

STANDARDS:

Materials 2 pcs. Per unit of product@ P4 per piece

Labor 3 hours per unit @ P7.50 per hour

Overhead 3 hours per unit @ P5 per hour

ACTUAL:

Materials 9,800 pcs. @ a total cost of P38,220

Labor 14,000 hours @ P7.75 per hour

Overhead P71,500

Budgeted production for the month was 5,000 units of product.

Required:

Problem 1: Compute and analyze the variances for all the manufacturing cost elements.