Problem 1

Delilah Corporation produces “one-size-fits-all” rubber

gloves and uses standard costing to account for its
costs. Each unit (a pair) of finished product contains
0.50 meters of direct material. However, a 20% direct
material spoilage calculated on input quantities occur
during the production process. The cost of direct
materials is P10 per meter.

How much is the standard direct materials cost per unit

of the finished product?

Problem 2
Samson Company uses a standard costing system in the
production of its only product. The 84,000 units of raw
materials inventory were purchased for P126,000 and 4
units of raw materials are required to produce one unit
of final product. In October, the company produced
14,400 units of product. The standard cost allowed for
materials was P72,000, and there was an unfavorable
usage variance of P3,000.

The units of materials used to produce the October

output totaled?

Problem 3
Fabrigar Corporation produces a product that is
distributed all over the country. The Corporation uses a
standard costing system and applies factory overhead
based in planned machine hours using a predetermined
annual rate.

For the year 200B, the following planned figures were

made available:
200B Budgeted Data
Fixed FOH P 960,000
Variable FOH 1,920,000
Direct Labor Hours 38,400
Machine Hours 192,000

During January 200B, the Company incurred Fixed FOH

cost of P80,960 and variable FOH cost of P171,200.
Data regarding labor and machine hours for the month
are as follows:
Actual Budgeted based on actual
production
Direct Labor 3,360 3,200
Hours
Machine Hours 17,280 16,800

1) The Fixed Spending Variance is?

2) The Controllable Variance is?
3) The Volume Variance is?