1. Compute for Spending Variance

2. Compute for Variable Overhead Efficiency Variance

3. Compute for Controllable Variance

ABC Co., the consultant of XYZ Co. had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company:

	Input required per unit	Standard cost per unit	Standard Cost per unit
Direct Materials	6 kg per unit	P90 per kg	P540
Direct Labor	5 hours per unit	P50 per hour	P250

Other information follows:

► Budgeted factory overhead for the year:

Variable	480,000
Fixed Variable	600,000

► The company's normal capacity per month is 400 units

► Actual cost materials purchased for the year is P2,342,000

► During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs

► Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed

► Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours

► Actual production during the year 5,150 units