Reference no: EM132828911

Problem - Eagle's Wing Corporation has the following costs data on October 20xx:

i. Standard variable costs per unit

Direct materials; 2 kg at P4.00 P8.00

Direct labor, 0 10 hours at P60 6.00

Variable manufacturing overhead; 0.10 hrs at P20 2.00

P16.00

ii. Fixed manufacturing overhead cost

Monthly budget, for 40,000 units or 4,000 hours P320,000.00

iii. Actual production costs

Direct materials purchased; 200,000 kg at P4.80 P960,000.00

Direct materials used; 110,000 kg at P4.80 528,000.00

Direct labor, 6,000 hours at P56 336,000.00

Manufacturing overhead 444,000.00

iv. Actual units produced; 50,000 units

Required - Using formula approach, compute the following;

1. Material variances

2. Labor variances

3. Overhead variances

a. 2-way analysis

b. 3-way analysis

c. 4-way analysis