The Mentor company manufactures butcher block tables. Each table requires the following direct materials, direct labor...

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The Mentor company manufactures butcher block tables. Each table requires the following direct materials, direct labor and overhead. Standard Quantity 2" clear maple 12 db. Ft. Direct labor 2 hours Variable overhead 2 hours Fixed overhead 2 hours Total Price (rate) P1.00 per bd. Ft. Std. Cost P12.00 P9.00 per hour 18.00 P2.50 per hour 5.00 P2.00 per hour 4.00 P39.00 During January, the following transactions occurred; 1. Purchases of lumber amounted P63,525. The price paid was P1.05 per board foot. There was no direct materials inventory at the beginning or end of the month. The price variance is recorded at the time of purchase. 2. The direct labor cost was P96,075. The hourly rate of pay was P9.15. 3. There was no work in process inventory on January 31, 2016, and 5,000 tables were manufactured. 4. The actual overhead incurred amounted to Variable Fixed P27,000 24,500 The budgeted capacity for the year is 72,000 units or 144,000 direct labor hours. The company's policy is to record all variances and close them to cost of goods sold at the end of each month. Sales for the month were 4,500 tables at a price of P10 per table. All sales are made on account. Required: 1. Compute for all variances 2. Give the journal entries to record all transactions for Januray, 2012. The Mentor company manufactures butcher block tables. Each table requires the following direct materials, direct labor and overhead. Standard Quantity 2" clear maple 12 db. Ft. Direct labor 2 hours Variable overhead 2 hours Fixed overhead 2 hours Total Price (rate) P1.00 per bd. Ft. Std. Cost P12.00 P9.00 per hour 18.00 P2.50 per hour 5.00 P2.00 per hour 4.00 P39.00 During January, the following transactions occurred; 1. Purchases of lumber amounted P63,525. The price paid was P1.05 per board foot. There was no direct materials inventory at the beginning or end of the month. The price variance is recorded at the time of purchase. 2. The direct labor cost was P96,075. The hourly rate of pay was P9.15. 3. There was no work in process inventory on January 31, 2016, and 5,000 tables were manufactured. 4. The actual overhead incurred amounted to Variable Fixed P27,000 24,500 The budgeted capacity for the year is 72,000 units or 144,000 direct labor hours. The company's policy is to record all variances and close them to cost of goods sold at the end of each month. Sales for the month were 4,500 tables at a price of P10 per table. All sales are made on account. Required: 1. Compute for all variances 2. Give the journal entries to record all transactions for Januray, 2012.

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1 Compute for all variances a Material Price Variance Standard Cost of Material Standard Quantity Standard Price Standard Cost of Material 12 bd Ft P1... View the full answer