Reference no: EM132549286

The company makes a single product that has the following standards:

Direct materials - 2.5 ounces at P 20.00 per ounce

Direct labor - 1.4 hours at P 12.50 per hour

Variable manufacturing overhead - P 3. 50 per hour

Variable factory overhead is assigned on the basis of direct labor hours. The following October data are available:

1. 3, 750 units of compound were produced during the month
2. There was no beginning direct materials inventory
3. The ending direct materials inventory was 2, 000 ounces
4. Direct materials purchased: 12, 000 ounces for P 225, 000
5. Direct labor hours worked: 5, 600 hours at a cost of P 67, 200
6. Variable manufacturing overhead costs incurred amounted at P 18, 200

Question 1.) What is the direct materials quantity variance for October?

a. P 52, 500 credit.

b. P 52, 500 debit.

c. P 12, 500 credit.

d. P 12, 500 debit.

Question 2.) What is the direct labor efficiency variance for October?

a. P 1, 400 favorable.

b. P 1, 900 unfavorable.

c. P 3, 750 favorable.

d. P 4, 375 unfavorable.

Question 3.) What is the variable overhead spending variance for October?

a. P 1, 400 favorable.

b. P 1, 900 unfavorable.

c. P 3, 750 favorable.

d. P 4, 375 unfavorable.

Question 4.) What is the variable overhead efficiency variance for October?

a. P 1, 400 favorable.

b. P 1, 225 unfavorable.

c. P 1, 900 unfavorable.

d. P 2, 700 favorable.

Question 5.) How much is the variable manufacturing overhead applied for October?

a. P18,200

b. P18,375

c. P19,600

d. Cannot be determined from given information