Reference no: EM132988848

Question - Standard Costing Upstate Manufactures a product that has the following standard costs:

Direct materials: 40 yards at P 2.70 per yard P 108

Direct labor: 8 hours at P 18.00 per hour 144

Total P 252

The following information pertains to July:

Direct materials purchased: 42,500 yards at P 2.78 per yard, or P 118,150.00;

Direct material used: 36,000 yards

Direct labor: 7,500 hours at P 18.30 per hour, or P 137,250

Actual completed production: 1,050 units

Required - Calculate the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.