Reference no: EM132548366

JYD Corporation uses an absorption costing system for internal reporting purposes. At present, however, it is considering to use the variable costing system.

Following are some data regarding JYD Corporation's budgeted and actual operations for the calendar year 2018.

Costs                                           Budgeted                          Actual

Materials                                  P25,200                     P23,400

Labor                                        18,480                         17,160

Variable Factory Overhead               8,400                        7,800

Fixed Factory Overhead                    10,640                      10,000

Variable Selling Expenses                       16,800                      15,000

Fixed Selling Expenses                              14,700                    14,700

Variable Administrative Expenses                  4,200                        3,750

Fixed Administrative Expenses                      6,300                        6,375

Total                                                        P104,720                  P98,185

                                                            Budgeted                      Actual

                                                                (Units)                       (Units)

Finished goods inventory beginning       280                            280

Production                                     1,120                       1,040

Sales                                                    1,120               1,000

• The budgeted costs were computed based on the budgeted production and sales of 1,120 units, the company's normal capacity level. The Corporation uses a predetermined factory overhead rate for applying manufacturing overhead costs to its product. The denominator level used in developing the predetermined rate is the firm's normal capacity. Any over or under applied factory overhead cost is closed to cost of goods sold at the end of the year.
• There is no work in process inventories at either the beginning or end of the year. The actual selling price was the same as the amount planned, P130 per unit.
• The previous year's planned per unit manufacturing costs were the same as the current planned unit manufacturing cost. The beginning inventory of finished goods for absorption costing purposes was valued at such per- unit manufacturing cost.

Question 1: What are the manufacturing cost variances for Variable Manufacturing Cost and Fixed Manufacturing cost?