Standard Costing Module
1. The standard direct material cost to produce a unit of X is 4 meters of material at P2.50 per meter.
The company purchased and used 4,200 meters of material for P10,080 to produce 1,000 units of
Product X. The material price variance must be:
2. A total of 6,850 kilograms of a raw material was purchased at a total cost of P21,920. The material
price variance was P1,370 favorable. The standard price per kilogram for the raw material must
be:
3. YEX Co. manufactures one product with a standard direct manufacturing labor cost of four hours
at P12.00 per hour. During June, 1,000 units were produced using 4,100 hours at P12.20 per hour.
The unfavorable direct labor efficiency variance was:
4. The standard cost card of a particular product specifies that it requires 4.5 direct-labor hours at
P12.80 per direct labor-hour. During March, 2,300 units of the product were produced and direct
labor wages of P128,300 were incurred. A total of 11,700 direct-labor hours were worked. The
direct labor variances for the month were: (Rate and Efficiency)
5. YEX Company employs standard absorption system for product costing. The standard cost of its
product is as follows:
Raw Materials P14.50
Direct Labor 2 hrs @ P8/hr 16.00
Manufacturing OH 2 hrs @ P11/hr 22.00
Total Cost/Unit P52.50
The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct
labor hours. The company planned to produce 25,000 units each month during 2010. Budgeted
factory overhead for 2010 is composed of P3,600,000 variable and P3,000,000 fixed.
During April 2010, 26,000 units of product were produced using 53,500 direct labor hours at a
cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000
variable. The total manufacturing overhead applied during April was P572,000.
