Reference no: EM132791535

Paubaya Co. uses standard costing for the accounting of its product. The budget officer provided the following standard data imposed by the top-level management concerning the direct materials:

• Standard direct material is 3 per unit of the product
• Standard price is P18 per unit of the product

During the period, the company acquired 1,000 units of direct material at a cost of P4,500. It also used 550 units of directs materials in manufacturing 150 units of its product.

Note: Round off final answers to the nearest whole number. If the answer is a favorable variance, then place a hyphen (-) before the figure. Ex.: -1,234

Problem 1: What is the material price variance?

Problem 2: What is the material efficiency variance?