Reference no: EM132768649
Question - STANDARD COSTING PROBLEM - SINEBAK PHARMA CO. uses a standard cost accounting system. During March, 2020, the company reported the following manufacturing variances:
Materials price variance P1,600 F
Materials quantity variance 2,400 U
Labor price variance 600 U
Labor quantity variance 2,200 U
Overhead controllable 500 F
Overhead volume 3,000 U
In addition, 15,000 units of product were sold at P18 per unit. Selling expenses P5,000 and Administrative expenses for the month were 2/3 of the operating expenses.
The standard cost per unit produced were:
Direct materials P8
Direct labor 4
Factory overhead 2
Corporate Income Tax Rate = 30%
Required - Make an income statement for management for the month ending March 31, 2020.