Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sashimi company uses a standard cost accounting sy

Sashimi Company uses a standard cost accounting system in its glass division. The standard cost...

50.1K

Verified Solution

Question

Accounting

image

Sashimi Company uses a standard cost accounting system in its glass division. The standard cost of making one glass windshield is: Direct materials (60 lbs. @ P 1/1b) P 60.00 Direct labor (3 hr. @ P 10/hr) 30.00 Manufacturing overhead (3 hr. @ P 8/hr) 24.00 Total standard unit cost P 114.00 The current variable manufacturing overhead rate is P3 per labor hour and the budgeted fixed manufacturing overhead is P 2,700. During July, the division produced 165 windshields compared to normal capacity of 180 windshields. The actual production cost was: Direct materials (9,000 lbs) P 10,800.00 Direct labor (500 hrs) 4,000.00 Manufacturing overhead (50% fixed) 5.200.00 Total actual cost P 20,000.00 What is the labor rate variance? O P 990 unfavorable OP 1,000 unfavorable O P 990 favorable P 1,000 favorable

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students