Standard costing lecture problem

PROBLEM 1:

The following data about Eros, Inc. is provided:

Standard costs Actual costs

700,000 units@
Direct materials 600,000 units of materials @ P2.00 each P1.90
60,000 hours allowed for actual output @ P7.00 per 65,000 hours @
Direct labor hour P7.20
Factory P8.00/hr on normal capacity of 50,000 direct labor
overhead hours:
P6.00 for variable costs P396,000 variable
P2.00 for fixed costs P130,000 fixed

Compute for the following variances:

1. Materials price
2. Materials usage
3. Rate variance
4. Labor efficiency rate
5. Spending variance for variable and fixed overhead
6. Efficiency variance for variable overhead
7. Flexible budget variance fixed
8. Volume variance