Reference no: EM132566978
The Virgin Island Company has standard variable costs as follows:
Materials, 3 pounds at P4.00 per pound P12.00
Labor, 2 hours P10.00 per hour 20.00
Variable overhead, P7.50 per labor hour 15.00
Total P47.00
Question 1: During September, Virgin Island produced 6,000 units, using 11,560 labor hours at a total wage of P113,870 and incurring P88,600 in variable overhead. The variable overhead variances are:
A. B. C. D.
Spending P1,900 favorable P1,900 unfavorable P1,400 favorable P1,400 unfavorable
Efficiency P3,300 unfavorable P3,300 favorable P1,900 favorable P1,900 favorable
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