+ PARTICULARS The following Information pertains to the production department of ABC Corp. BUDGETED COST Direct...

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+ PARTICULARS The following Information pertains to the production department of ABC Corp. BUDGETED COST Direct Materials ACTUAL COST 247 000 230 000 Direct Labor 183 500 165 000 Indirect Salaries* 190 000 220 000 Indirect Materials 16 500 18 000 Allocated Repairs and Maintenance 70 000 50 000 Depreciation 30 000 25 000 Allocated Utilities Costs 26 000 25 000 Total Cost 763 000 733 000 *Indirect Salaries includes the salary of manager budgeted at P28,000 with actual cost of P35,000. Assume that the top-level management is evaluating the performance of its production manager. Compute for the total cost variance where the manager should be evaluated (favorable)/unfavorable? I + PARTICULARS The following Information pertains to the production department of ABC Corp. BUDGETED COST Direct Materials ACTUAL COST 247 000 230 000 Direct Labor 183 500 165 000 Indirect Salaries* 190 000 220 000 Indirect Materials 16 500 18 000 Allocated Repairs and Maintenance 70 000 50 000 Depreciation 30 000 25 000 Allocated Utilities Costs 26 000 25 000 Total Cost 763 000 733 000 *Indirect Salaries includes the salary of manager budgeted at P28,000 with actual cost of P35,000. Assume that the top-level management is evaluating the performance of its production manager. Compute for the total cost variance where the manager should be evaluated (favorable)/unfavorable? I

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Answer To compute the total cost variance we need to calculate the difference bet... View the full answer