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numnum Company manufactures a product for which the following standards have been set: Standard Quantity...

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Accounting

numnum Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3.0 meters P495 per meter P1,485 Direct labor ? hrs ? per hour ? During April, the company purchased direct materials at a cost of P5,008,500 all of which were used in the production of 3,200 units of product. In addition, 4,900 direct labor-hours were worked on the product during the month. The cost of this labor time was P4,299,750. The following variances have been computed for the month: Materials quantity variance . . . . . . . . . . . . . . . . P198,000 U Labor spending variance ...........................P 20,250 F Labor efficiency variance ..........................P 90,000 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for April. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the months production.

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