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Corporation has just developed a new product called Samat. Standard cost system was established to help control costs based on the ff standard materials and direct labor:
Direct materials: 40,000 diodes were purchased for use in production at a cost of P0.36 per diode. Some 3,000 of these diodes were still in inventory at the end of the month.
Direct labor: 8,200 direct labor hours were worked at a cost P67,240.
The company determines variances at the earliest possible time.
Required:
Question 1: Compute the following variances for June: 1. Direct materials price and usage variances. 2. Direct labor rate and efficiency variances.
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