Reference no: EM132561734

The Michigan Company has made the following information available for its production facility for the month of June. Fixed overhead was estimated at 19,000 machine hours for the production cycle. Actual machine hours for the period were 18,900, which generated 3,900 units.

Material purchased (80,000 pieces) - P314,000

Material quantity variance - P6,400 U

Machine hours used (18,900 hours)

VOH spending variance - P50 U

Actual fixed overhead - P60,000

Actual labor cost - P40,120

Actual labor hours 5,900

Michigan's standard costs are as follows:

Direct material 20 pieces @ P4 per piece

Direct labor 1.5 hours @ P6 per hour

Variable overhead (applied on a machine hour basis) 4.8 hours @ P2.50 per hour

Fixed overhead (applied on a machine hour basis) 4.8 hours @ P3 per hour

Question 1: Determine the following items:

1. material purchase price variance

2. standard quantity allowed for material

3. total standard cost of material allowed

4. actual quantity of material used

5. labor rate variance

6. standard hours allowed for labor

7. total standard cost of labor allowed

8. labor efficiency variance

9. actual variable overhead incurred

10. standard machine hours allowed

11. variable overhead efficiency variance

12. budgeted fixed overhead

13. applied fixed overhead

14. fixed overhead spending variance

15. volume variance

16. total overhead variance