CHAPTER 15

Answers to Multiple Choice Theoretical

1. c 7. a
2. a 8. a
3. a . c
!. " 1#. $
5. $ 11. a
%. c 12. "
&olutions to Multiple Choice Co'putational
1. "
(X P3.60) x 1,600 = P240 unfavorable material price variance
X = P3.75 actual purchase price per unit.
2. c
(30,000 2,000) X = 3,000 unfavorable material !uantit" variance
X = P3 #tan$ar$ price per unit
%ctual co#t of $irect material# P&4,000
%ctual #tan$ar$ price (30,000 x P3) 0,000
Material price (ariance )a(ora"le P %*###
3. a
'tan$ar$ material allo(e$ (2,000 x 4) = &,000 )ilo#
(*,&00 &,000) x P+.+0 = P1*#2# +M ,uantit- (ariance .)/
!. $
2 , .&0 = 2.+ x P30 = P75 &tan$ar$ +M cost per unit
5. a
(P3.60 - X) 1&,000 = P3,600 unfavorable ./ price variance
X = P3.40 #tan$ar$ price
(1+,000 - 16,000) x P3.40 = P3*!## +M ,uantit- (ariance .)/
1
%. "
(P11 P10) x 14,000 unit# 0 P1!*### un)a(ora"le
7. "
(2,000 - 30,000) X = P4,000 favorable .0 efficienc" variance
1 = P! stan$ar$ +2 rate
(X P4) 2,000 .0 1r# = P+,&00 favorable .0 rate variance
1 0 P3.8# actual +2 rate
8. c
(X 10,000 1r#.) P3.*+ = P4,200 unfavorable .0 efficienc" variance
1 0 11*12# actual hours wor3e$
. a
2#timate$ (ee)l" (a3e# per emplo"ee P240
2mplo"ee benefit# (P240 x 2+4) 60
5otal 300
.ivi$e$ b" no. of 1our# per emplo"ee 6 30
7ate per 1our P 10
/ultipl" b" no. of 1our# per unit X 2
&tan$ar$ $irect la"or cost per unit P 2#
1#. "
'tan$ar$ 1our# allo(e$ for 00 unit# (00 x 2) = 1,&00 1our#
(2,000 1our# 1,&00 1our#) x 10 = P2*### un)a(ora"le +2 e))icienc- (ariance
11. a.
8ee)l" (a3e# per (or)er P+00
8or)er#9 benefit# (P+00 x 204) 100
5otal 600
.ivi$e$ b" no. of 1our# (or)e$ 6 40
7ate per 1our P 1+
:our# re!uire$ per unit x 2
&tan$ar$ +2 cost per unit P 3#
12. a
(X P6.30) x 20,000 1r#. = P&,400 favorable .0 rate variance
X = P+.&& actual .0 rate
P+.&& x 20,000 .0 1our# = P117*%## Actual +2 cost
2
13. a
Standard DL cost per unit:
%ctual (a3e# pai$ P33,6&0
0abor rate variance unfavorable ( 1,*20)
0abor efficienc" variance favorable +2+
'tan$ar$ .0 co#t P32,4&+
.ivi$e$ b" unit# pro$uce$ 6 6,2+0 P+.20
Standard DM cost per unit:
/aterial co#t P1*,0+
/aterial price variance favorable 1,400
/aterial u#a3e variance unfavorable ( &0)
'tan$ar$ material co#t P1*,+6
.ivi$e$ b" unit# pro$uce$ 6 6,2+0 2.&1
&tan$ar$ pri'e cost per unit P8.#1
1!. c
'tan$ar$ over1ea$ co#t allo(e$ (P4 x 3,+00 #t$. 1our#) P14,000
%ctual over1ea$ co#t incurre$ 12,600
4(erall o(erhea$ (ariance )a(ora"le P 1*!##
15. $
%pplie$ over1ea$ (P42,000 ; P30,000) P*2,000
<n$er-applie$ over1ea$ 1+,000
Actual o(erhea$ P87*###
1%. "
%ctual manufacturin3 over1ea$ (P2+0,000 ; P32+,000) P+*+,000
=u$3ete$ over1ea$>
?ixe$ (P3,000,000,12) P2+0,000
@ariable at #tan$ar$>
'tan$ar$ 1r#. allo(e$ (26,000 x 2) +2,000
@ariable #t$. rate (3,600,000,600,000) x 6 312,000 +62,000
4(erhea$ controlla"le (ariance )a(ora"le P 13*###
17. $
=u$3ete$ .0 1our# per mont1 (600,000 , 12) +0,000
'tan$ar$ .0 1our# allo(e$ (26,000 x 2) +2,000
.ifference in time 2,000
?ixe$ over1ea$ rate (P3,000,000 , 600,000 1r#.) x +
4(erhea$ (olu'e (ariance )a(ora"le P1#*###
18. $
3
%ctual variable over1ea$ P&2,000
@ariable over1ea$ allo(e$ (+,000 x 2 x 3) 30,000
5aria"le o(erhea$ controlla"le (ariance un)a(ora"le P52*###
1. a
April:
%ctual factor" over1ea$ P140,100
=u$3ete$ over1ea$>
?ixe$ (10 x 404 x 1+,000) P60,000
@ariable at #tan$ar$ (10 x 604 x 12,000) *2,000 132,000
4(erhea$ controlla"le (ariance un)a(ora"le P 8*1##
May:
%ctual factor" over1ea$ P14,300
=u$3ete$ over1ea$>
?ixe$ P60,000
@ariable at #tan$ar$ (10 x 604 x 1+,000) 0,000 1+0,000
4(erhea$ controlla"le (ariance )a(ora"le P 7##
2#. c
=u$3ete$ fixe$ over1ea$ P60,000
'tan$ar$ over1ea$ allo(e$ 60,000
4(erhea$ (olu'e (ariance P #
21. c
51e entr" to recor$ ./ u#e$ i# to $ebit 8AP at #tan$ar$ price# an$ #tan$ar$
!uantitie# (4+0 unit# x P = P4,0+0). An t1i# !ue#tion, all ./ variance# are
recor$e$ at t1e time 8AP i# c1ar3e$. 51e material# price variance an$ t1e material#
!uantit" variance mu#t be compute$. 51e proBect u#e$ more unit# at a 1i31er price
t1an e#timate$, #o bot1 variance# (ill be unfavorable ($ebit#). 51e material# !uantit"
variance i# P4+0 < C(+00 4+0) x PD. 51e material# price variance i# P+00 < C+00
unit# x (P10 - P)D. /aterial# i# cre$ite$ for t1e actual price# an$ actual !uantitie#
(+00 x P10 = P+,000).
22. a
51e entr" to recor$ accrue$ pa"roll i# to c1ar3e 8AP at t1e #tan$ar$ (a3e rate time#
t1e #tan$ar$ number of 1our# an$ to cre$it accrue$ pa"roll for t1e actual pa"roll.
51e proBect re!uire$ mor 1our# but a lo(er (a3e rate t1an e#timate$. :ence, t1e
labor efficienc" variance (ill be unfavorable (a $ebit)E t1e labor price variance (ill
be favorable (a cre$it).
0abor efficienc" variance> (+0-4+) x P12 = P60 <
0abor price variance> (P12-P10) x +0 = P100 ?
23. $
4
51e entr" i# to $ebit applie$ factor" over1ea$ fixe$) an$ cre$it factor" over1ea$
control (fixe$) for t1eir re#pective balance#. 51e $ifference i# attributable #olel" to
t1e pro$uction volume variance becau#e t1e bu$3et (#pen$in3) variance i# Fero
(actual fixe$ factor" over1ea$ = t1e bu$3ete$ amount). 51e volume variance i#
unfavorable becau#e fixe$ over1ea$ i# un$erapplie$. 51e un$erapplication (t1e
unfavorable volume variance $ebite$) i# P2,+00 CP32,+00 bu$3ete$ fixe$ factor"
over1ea$ (2,000 1our# x P1+ per 1our).
2!. a
51e bu$3et variance i# reco3niFe$ b" a $ebit, 3iven t1at more (a# #pent for t1at
activit" t1an (a# e#timate$. 51e entr" to recor$ t1e unfavorable variable over1ea$
bu$3et variance i# to c1ar3e t1e variable over1ea$ volume variance account for t1e
appropriate amount. 51e variable over1ea$ applie$ i# c1ar3e$ for it# balance. 51e
variable over1ea$ control account i# cre$ite$ for it# balance. 51e#e entrie# (ill re#ult
in a Fero balance in bot1 t1e applie$ an$ t1e control account# a##umin3 t1at no
variable over1ea$ efficienc" variance exi#te$.
%ctual variable over1ea$ incurre$> (P+ x +30 1our#) = P2,6+0
%pplie$ variable over1ea$> (P4.+0 x +30 1our#) = 2,3&+
@ariable over1ea$ bu$3et variance (u) P 26+
&426T748& T4 PR492EM&
+
Pro"le' 15:1
1. Material A:1;
Materials Quantity Variance
'tan$ar$ !uantit" ( x 4,000) at #tan$ar$ price (P0.20) P *,200
%ctual !uantit" (36,2+0) at #tan$ar$ price (P0.20) *,2+0
/aterial# !uantit" variance (2+0 x P0.20) P +0 (<)
Materials Price Variance
%ctual !uantit" (36,2+0) at #tan$ar$ price (P0.20) P *,2+0
%ctual !uantit" (36,2+0) at actual price (P0.204) *,3+
/aterial# price variance (36,2+0 x P.004) P 14+ (<)
Material A:2
Materials Quantity Variance
'tan$ar$ !uantit" (.2 x 4,000) at #tan$ar$ price (P0.30) P11,040
%ctual !uantit" (36,400) at #tan$ar$ price (P.30) 10,20
/aterial# !uantit" variance (400 x P.30) P 120 (?)
Materials Price Variance
%ctual !uantit" (36,400) at #tan$ar$ price (P0.30) P10,20
%ctual !uantit" (36,400) at actual price (P0.2&) 10,12
/aterial# price variance (36,400 x P0.02) P *2& (?)
&u''ar-;
Materials Quantity Variance Price Variance Total Variance
%-1 P +0 < P14+ < P1+ <
%-2 120 ? *2& ? &4& ?
5otal P *0 ? P+&3 ? P6+3 ?
2. Work in process 18,240
Materials quantity variance (F) 70
Materials price variance (F) 583
Materials inventory 17,587
o c!ar"e# $ork in process $it! stan#ar# cost
o% &aterials, re&ove# actual cost o% &aterials
%ro& inventory, an# recor# &aterials variances'
6
Pro"le' 15:2
1. 2a"or 5ariance Anal-sis
2a"or Class AA;
Labor Efficiency Variance
'tan$ar$ 1our# (1,010) G #tan$ar$ rate (P11.20) P11,312
%ctual 1our# (1,0+0) G #tan$ar$ rate (P11.20) 11,*60
0abor efficienc" variance (40 1our# x P11.20) P 44& (<)
Labor Rate Variance
%ctual 1our# (1,0+0) G #tan$ar$ rate (P11.20) P11,*60
%ctual 1our# (1,0+0) G actual rate (P11.10) 11,6++
0abor rate variance (1,0+0 1our# x P0.10) P 10+ (?)
2a"or Class 99;
Labor Efficiency Variance
'tan$ar$ 1our# (2,020) G #tan$ar$ rate (P12) P24,240
%ctual 1our# (2,010) G #tan$ar$ rate (P12) 24,120
0abor efficienc" variance (10 1our# x P12) P 120 (?)
Labor Rate Variance
%ctual 1our# (2,010) G #tan$ar$ rate (P12) P24,120
%ctual 1our# (2,010) G actual rate (P11.0) 23,1
0abor rate variance (2,010 1our# x P0.10) P 201 (?)
&u''ar-;
Labor Labor Efficiency Labor Rate Total
Class Variance Variance Variance
%% P 44& < P 10+ ? P343 <
== 120 < 201 ? 321 ?
5otal P 32& < P 306 ? P 22 <
2. Work in process 35,552
(a)or e%%iciency variance (*) 328
(a)or rate variance (F) 30+
Factory payroll 35,574
o c!ar"e Work in ,rocess $it! stan#ar# cost
-% #irect la)or, re&ove# actual la)or cost %ro&
Factory ,ayroll an# recor# la)or variance'
Pro"le' 15:3
*
a. Work in ,rocess 340,800
Materials quantity variance 480
Materials price variance +,.28
Materials inventory 334,352
o c!ar"e Work in ,rocess $it! stan#ar# cost
o% &aterials, re&ove actual cost o% &aterials
%ro& Materials /nventory an# recor# &aterials
variances'
Computations of Materials Variances:
0M11 Materials 2uantity 3ariance
'tan$ar$ !uantit" at #tan$ar$ price (200,000 x P1.20) P240,000
%ctual !uantit" at #tan$ar$ price (201,000 x P1.20) 241,200
/aterial# !uantit" variance (1,000 x P1.20) P 1,200 (<)
0M11 Materials ,rice 3ariance
%ctual !uantit" at #tan$ar$ price (201,000 x P1.20) P120,600
%ctual !uantit" at actual price (201,000 x P1.16) 233,160
/aterial# price variance (201,000 x P0.04) P &,040 (?)
0M12 Materials 2uantity 3ariance
'tan$ar$ !uantit" at #tan$ar$ price (*0,000 x P1.44) P100,&00
%ctual !uantit" at #tan$ar$ price (6,+00 x P1.44) 100,0&0
/aterial# !uantit" variance (+00 x P1.44) P *20 (?)
0M12 Materials ,rice 3ariance
%ctual !uantit" at #tan$ar$ price (6,+00 x P1.44) P100,0&0
%ctual !uantit" at actual price (6,+00 x P1.4+6) 101,12
/aterial# price variance (6,+00 x P0.016) P 1,112 (<)
&u''ar-;
Materials Quantity Variance Price Variance Total
7/-1 P1,200 (<) P&,040 (?) P6,&40 (?)
7/-2 *20 (?) 1,112 (<) 32 (<)
P 4&0 (<) P6,2& (?) P6,44& (?)
Problem !"# $continued%
&
". Work in ,rocess 48,000
(a)or 4%%iciency 3ariance 1,53+
(a)or 0ate 3ariance 1,032
Factory ,ayroll 50,5+8
o c!ar"e Work in ,rocess $it! stan#ar#
cost o% #irect la)or, re&ove actual cost %ro&
Factory ,ayroll an# recor# la)or variances'
Computations of Labor Variances:
(a)or 4%%iciency 3ariance
'tan$ar$ 1our# at #tan$ar$ rate (2,+00 x P1.20) P4&,000
%ctual 1our# at #tan$ar$ rate (2,+&0 x P1.20) 4,+36
0abor efficienc" variance (&0 x P1.20) P 1,+36 (<)
(a)or 0ate 3ariance
%ctual 1our# at #tan$ar$ rate (2,+&0 x P1.20) P4,+36
%ctual 1our# at actual rate (2,+&0 x P1.60) +0,+6&
0abor rate variance (2,+&0 x P.40) P 1,032 (<)
Pro"le' 15:!
1. %nnual fixe$ co#t# P +40,000
%nnual variable co#t# bu$3ete$ for normal volume *20,000
5otal co#t# at normal volume P1,260,000
'tan$ar$ co#t per .0 1our> (P1,260,000 6 24,000 1r#) P+2.+0
'tan$ar$ co#t per unit of pro$uct> (P1,260,000 6 1&0,000 unit# P *.00
2. /a" pro$uction 1+,1&0 unit#
'tan$ar$ co#t per unit x P *.00
5otal #tan$ar$ co#t P106,260
3. 'tan$ar$ co#t# P106,260
%ctual co#t#>
?ixe$ P46,000
@ariable 60,&+2 106,&+2
5otal over1ea$ variance P +2 (<)
!. 5u#"et 3ariance
=u$3ete$ over1ea$>
@ariable (1+,1&0 x P4 #t$ variable rate) P60,*20
?ixe$ (P+40,000 6 12) 4+,000 P10+,*20
%ctual over1ea$ co#t 106,&+2
Hver1ea$ bu$3et variance P 1,132 (<)
5. 3olu&e 3ariance
'tan$ar$ co#t# (1+,1&0 x P3.00 fixe$ #t$ rate) P 4+,+40
?ixe$ co#t# (P+40,000 6 12) 4+,000
Hver1ea$ volume variance P +40 (?)

Pro"le' 15:5
1. <ournal entries;
a. 8or) in Proce## (#tan$ar$ co#t) &,200
/aterial price variance 10,144
/aterial !uantit" variance 2,44
/aterial# (actual co#t) 06,400
". 8or) in proce## (#tan$ar$ co#t) +12,*00
0abor efficienc" variance 320
0abor rate variance 4,020
?actor" pa"roll (actual co#t) +0,000
c. 8or) in proce## (#tan$ar$ co#t) 362,600
Hver1ea$ bu$3et variance 1,000
Hver1ea$ volume variance 2,400
/anufacturin3 over1ea$ control (%ctual co#t) 361,200
$. ?ini#1e$ 3oo$# 1,**4,+00
8or) in proce## 1,**4,+00
2,+00 unit# x P*0.&0
e. %ccount# receivable 2,2+3,6&0
'ale# 2,2+3,6&0
2,16* unit# x P1,040
). Io#t of 3oo$# #ol$ 1,+3&,13*
?ini#1e$ 3oo$# 1,+3&,13*
2,16* unit# x P*0.&0
=. /aterial# !uantit" variance 2,44
0abor rate variance 4,020
Hver1ea$ volume variance 2,400
Io#t of 3oo$# #ol$ 2,100
Hver1ea$ bu$3et variance 1,000
/aterial# price variance 10,144
0abor efficienc" variance 320
2. >ueen Co'pan-
Partial 7nco'e &tate'ent
Month En$e$ April 3#* 2#1#
'ale# P2,2+3,6&0
Io#t of 3oo$# #ol$
Io#t of 3oo$# #ol$ at 't$ co#t P1,+3&,13*
/aterial price variance 10,144
0abor efficienc" variance 320
Hver1ea$ bu$3et variance 1,000
/aterial !uantit" variance ( 2,44)
0abor rate variance ( 4,020)
Hver1ea$ volume variance ( 2,400) 1,+40,23*
Jro## profit P *13,443
10
Pro"le' 15:%
+irect Materials 5ariances;
/aterial# price variance> P14,000 - (P3 x +0,000) = P1,000 (?)
/aterial# !uantit" variance> (41,+00 40,000) x P3 = P4,+00 (<)
+irect 2a"or 5ariances;
0abor rate variance> 16,000 (21,000 x ) = P*,000 (<)
0abor efficienc" variance> (21,000 20,000) x = P,000 (<)
4(erhea$ 5ariances;
Hver1ea$ controllable variance>
%ctual over1ea$ P1+&,000
=u$3ete$ over1ea$ at #tan$ar$ labor 1our#>
?ixe$ P120,000
@ariable (10,000 x P4) 40,000 160,000
Hver1ea$ controllable variance P 2,000 (?)
Hver1ea$ volume variance>
=u$3ete$ over1ea$ at #tan$ar$ labor 1our# P160,000
'tan$ar$ over1ea$ (10,000 x 2) x * 140,000
Hver1ea$ volume variance P 20,000 (<)
Pro"le' 15:7
+irect Materials 5ariances;
/aterial# price variance> (P*.30 P*) x +,100 = P1,+30 (<)
/aterial# !uantit" variance> (+,100 - 4,00) x P* = P1,400 (<)
+irect 2a"or 5ariances;
0abor rate variance> (P12.+0 - P12) x *,000 = P6,000 (<)
0abor efficienc" variance> (*,000 - *,3+0) x P12 = P4,200 (?)
4(erhea$ 5ariances;
Hver1ea$ controllable variance>
%ctual over1ea$ P*4,20
=u$3ete$ over1ea$ at #tan$ar$ labor 1our#>
?ixe$ P1&,*+0
@ariable (*,3+0 x P*.+0) ++,12+ *3,&*+
Hver1ea$ controllable variance P 1,04+ (<)
Hver1ea$ volume variance>
=u$3ete$ over1ea$ at #tan$ar$ labor 1our# P*3,&*+
%pplie$ over1ea$ (*,3+0 x P10) *3,+00
Hver1ea$ volume variance P 3*+ (<)
11
Pro"le' 15:8
+irect Materials 5ariances
/aterial# price variance> (P1 - P.0) x +&,000 = P+,&00 (<)
/aterial# !uantit" variance> (+&,000 - 60,000) x P.0 = P1,&00 (?)
+irect 2a"or 5ariances
0abor rate variance> (P11.+0 - P12) x 4,00 = P2,4+0 (?)
0abor efficienc" variance> (4,00 - +,000) x P12 = P1,200 (?)
4(erhea$ 5ariances;
Hver1ea$ controllable variance>
%ctual over1ea$ P2+,400
=u$3ete$ over1ea$ at #tan$ar$ labor 1our#>
?ixe$ P10,400
@ariable 14,000 24,400
Hver1ea$ controllable variance P 1,000 (<)
Hver1ea$ volume variance>
=u$3ete$ over1ea$ at #tan$ar$ labor 1our# P24,400
%pplie$ over1ea$ (+,000 x P4.&) 24,000
Hver1ea$ volume variance P 400 (<)
Pro"le' 15:
.a/ +irect Materials 5ariances;
/aterial# price variance> (*.30 - P*) x +&,000 = P1*,400 (<)
/aterial# !uantit" variance> (+&,000 - 60,000) x P* = P14.000 (?)
+irect 2a"or 5ariances>
0abor rate variance> (P11.20 - P12) x 11,+00 = P,200 (?)
0abor efficienc" variance> (11,+00 - P12,000) x P12 = P6,000 (?)
4(erhea$ 5ariances;
Hver1ea$ controllable variance>
%ctual over1ea$ P132,000
=u$3ete$ over1ea$ at #tan$ar$ .0 1our#>
?ixe$ P0,000
@ariable (12,000 x P3) 36,000 126,000
Hver1ea$ controllable variance P 6,000 (<)
Hver1ea$ volume variance>
=u$3ete$ over1ea$ at #tan$ar$ .0 1our# P126,000
%pplie$ over1ea$ (12,000 x P) 10&,000
Hver1ea$ volume variance P 1&,000 (<)
12
Pro"le' 15: .continue$/
."/ /aterial# 406,000
/aterial price variance 1*,400
%ccount# pa"able 423,400
8or) in proce## 420,000
/aterial# !uantit" variance 14,000
/aterial# 406,000
?actor" pa"roll 13&,000
0abor rate variance ,200
Pa"roll pa"able 12&,&00
8or) in proce## 144,000
0abor efficienc" variance 6,000
?actor" pa"roll 13&,000
%pplie$ factor" over1ea$ 10&,000
Hver1ea$ controllable variance 6,000
Hver1ea$ volume variance 1&,000
?actor" over1ea$ control 132,000
Pro"le' 15:1#
.a/ +irect Materials 5ariances;
/aterial# price variance> (P3.40 - P3) x 1*,*00 = P*,0&0 (<)
/aterial# !uantit" variance> (1*,*00 - 1&,000) x P3 = P 00 (?)
+irect 2a"or 5ariances;
0abor rate variance> (P11.&0 - P12) x 2,+0 = P +0 (?)
0abor efficienc" variance> (2,+0 - 3,000) x P12 = P 600 (?)
4(erhea$ 5ariances;
Hver1ea$ controllable variance>
%ctual over1ea$ P&*,+00
=u$3ete$ over1ea$ at #tan$ar$ .0 1r#>
?ixe$ P2&,000
@ariable (3,000 x 20) 60,000 &&,000
Hver1ea$ controllable variance P +00 (?)
Hver1ea$ volume variance>
=u$3ete$ over1ea$ at #tan$ar$ .0 1r#. P&&,000
%pplie$ over1ea$ 0,000
Hver1ea$ volume variance P 2,000 (?)
13
Pro"le' 15:1# .continue$/
."/ Hol- Manu)acturin= Co'pan-
7nco'e &tate'ent
Month En$e$ <ul- 31* 2#1#
'ale# P240,000
Io#t of 3oo$# #ol$ (actual co#t)
Io#t of 3oo$# #ol$ at #tan$ar$ co#t P1&0,000
/aterial# price variance *,0&0
/aterial# !uantit" variance (00)
0abor price variance (+0)
0abor efficienc" variance (600)
Hver1ea$ controllable variance (+00)
Hver1ea$ volume variance ( 2,000) 1&2,40
Jro## profit +*,+10
Hperatin3 expen#e# 2+,000
Ket income P 32,+10
Pro"le' 15:11
.a/ <ournal Entries;
1. /aterial# 6,1+0
/aterial# price variance 61+
%ccount# pa"able 6,*6+
2. 8or) in proce## 6,000
/aterial# !uantit" variance 1+0
/aterial# 6,1+0
3. ?actor" pa"roll 16,&00
0abor rate variance 420
Pa"roll pa"able 16,3&0
4. 8or) in proce## 16,000
0abor efficienc" variance &00
?actor" pa"roll 16,&00
+. ?actor" over1ea$ control 24,200
%ccount# pa"able 24,200
6. 8or) in proce## 24,000
%pplie$ factor" over1ea$ 24,000
*. %pplie$ factor" over1ea$ 24,000
Hver1ea$ volume variance 400
Hver1ea$ controllable variance 200
?actor" over1ea$ control 24,200
&. ?ini#1e$ 3oo$# 46,000
8or) in proce## 46,000
14
. %ccount# receivable *0,000
'ale# *0,000
Pro"le' 15:11 .continue$/
10. Io#t of 3oo$# #ol$ 46,000
?ini#1e$ 3oo$# 46,000
11. 'ellin3 an$ a$mini#trative expen#e# 2,000
%ccrue$ expen#e# 2,000
."/ 5enus Corporation
7nco'e &tate'ent
Month En$e$ <anuar- 31* 2#1#
'ale# P*0,000
Io#t of 3oo$# #ol$ (actual co#t)
Io#t of 3oo$# #ol$ at #tan$ar$ co#t P46,000
/aterial price variance 61+
/aterial !uantit" variance 1+0
0abor rate variance ( 420)
0abor efficienc" variance &00
Hver1ea$ controllable variance ( 200)
Hver1ea$ volume variance 400 4*,34+
Jro## profit 22,6++
'ellin3 an$ a$mini#trative expen#e# 2,000
Ket income P20,6++
1+