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In September, Cottons Company produced 1,000 units of product. 2,080 units of raw materials were used at a total cost of P303,680. The actual direct labor hours used were equivalent to 97.60% of the standard direct labor hours at a cost of P62,464. Cottons standard costs to produce one unit of its product in thousands is: a. 2 units of raw material at P150 per unit; b. 1/2 hour of DL at P125 per hour.
Problem 1: What is the direct labor rate variance and direct labor efficiency variance
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