Reference no: EM132193384

Question - Ardmore Enterprises uses a standard cost system in its small appliance division. The standard cost of manufacturing one unit of Zeb is a 5 follows.

Materials 60 pounds at P1.50 per pound 90

Labor 3 hours at P12 per hour 36

Factory overhead-3 hours at P8 per hour 24 Total standard cost per unit P150

The budgeted variable factory overhead rate is P3 per labor hour and the budgeted fixed factory overhead is P27,000 per month. During May, Ardmore produced 1,650 units of Zeb compared with a normal capacity of 1,800 units. The actual cost per unit was as follows:

Materials (purchased and used) 58 pounds at P1.65 per pound P 95.70

Labor-3.1 hours at P12 per hour 37.20

Factory overhead - P39,930 per 1,650 units 24.20

Total actual cost per unit P 157.10

Required - What is the total direct materials quality variance for May?