Percentage of the Full Cost of the Product

Direct Materials 60,000.00

Direct Manufacturing Labor 40,000.00

Variable Factory Overhead 30,000.00

Fixed Factory Overhead 50,000.00

Variable Selling and Administrative Expense 20,000.00

Fixed Selling and Administrative Expense 30,000.00

Full Cost 230,000.00

Budgeted Sales – Full cost/ Full Cost

(300,000 - 230,000)/ 230,000 30.43%

Percentage of the variable cost of the product

Direct Materials 60,000.00

Direct Manufacturing Labor 40,000.00

Variable Factory Overhead 30,000.00

Variable Selling and Administrative Expense 20,000.00

Variable Cost of the Product 150,000.00

Budgeted Sales Variable Cost/ Variable Cost

(300,000 150,000) /150,000 100.00%

Percentage of the Variable Manufacturing Cost

Direct Materials 60,000.00

Direct Manufacturing Labor 40,000.00

Variable Factory Overhead 30,000.00

Variable Manufacturing Cost 130,000.00

Budgeted Sales - Variable Man Cost/ Var. Man Costs

(300,000 - 130,000) / 130,000 130.77%

Percentage of Manufacturing Cost

Direct Materials 60,000.00

Direct Manufacturing Labor 40,000.00

Variable Factory Overhead 30,000.00

Fixed Factory Overhead 50,000.00

Manufacturing Cost 180,000.00

Budgeted Sales - Manufacturing Cost / Man Cost

(300,000 - 180,000)/ 180,000 66.67%

Problem 8

a. Sales price variance

Actual

Product budget sales price actual sales price difference actual sales sales price variance

1 P0.98 P0.74 -P0.24 2,845.00 -P682.80

2 P0.76 P1.02 P0.26 3,280.00 P856.08

3 P0.20 P0.20 -P0.01 7,340.00 -P36.70

4 P1.50 P1.65 P0.15 4,320.00 P648.00

Total P3.44 P3.60 17,785.00 P784.58 FAVORABLE

 B. Cost price variance

Actual

Product budget sales price actual sales price difference actual sales sales price variance

1 P0.60 P0.59 P0.01 2,845.00 P15.00

2 P0.65 P0.99 -P0.34 3,280.00 -P1,108.00

3 P0.20 P0.14 P0.06 7,340.00 P477.00

4 P1.14 P1.25 -P0.11 4,320.00 -P475.20

Total P3.44 P3.60 17,785.00 -P1,091.20 UNFAVORABLE

C. Sales quantity variance

Actual

Product actual sales in pound budgeted sales in pound difference standard sales price sales price variance

1 2,845.00 2,000.00 845.00 P0.98 P823.88

2 3,280.00 5,000.00 -1,720.00 P0.76 -P1,310.00

3 7,340.00 7,000.00 340.00 P0.20 P68.00

4 4,320.00 4,000.00 320.00 P1.50 P480.00

Total P17,785.00 P18,000 P3.44 P61.23 FAVORABLE

D. Cost quantity variance

Actual

Product actual sales in pound budgeted sales in pound difference standard cost price cost price variance

1 2,845.00 2,000.00 845.00 P0.60 P507.00

2 3,280.00 5,000.00 -1,720.00 P0.65 -P1,118.00

3 7,340.00 7,000.00 340.00 P0.20 P68.00

4 4,320.00 4,000.00 320.00 P1.14 P364.80

Total P17,785.00 P18,000 P2.59 -P178.20 UNFAVORABLE

E. Sales mix variance

Actual

Product actual sales in pound budgeted sales in pound difference standard contribution margin sales mix variance

1 2,845.00 2,000.00 845.00 P0.38 P316.88

2 3,280.00 5,000.00 -1,720.00 P0.11 -P192.64

3 7,340.00 7,000.00 340.00 P0.00 P0.00

4 4,320.00 4,000.00 320.00 P0.36 P115.20

Total P17,785.00 P18,000 P0.85 P239.44 FAVORABLE

F. Final sales volume variance

Actual

Product actual sales in pound budgeted sales in pound difference standard sales price sales price variance

1 2,845.00 2,000.00 845.00 P0.98 P823.88

2 3,280.00 5,000.00 -1,720.00 P0.76 -P1,310.00

3 7,340.00 7,000.00 340.00 P0.20 P68.00

4 4,320.00 4,000.00 320.00 P1.50 P480.00

Total P17,785.00 P18,000 P3.44 P61.23 FAVORABLE