Mercurial Company has made the following information available for its production facility for the current month. Fixed overhead was estimated at 22,000 machine hours for the production cycle. Actual machine hours for the period were 22,500; 4,200 units were produced.

Material purchased (107,000 pieces)	P529,650
Material quantity variance	P7,000	U
Machine hours used (22,500 hours)
VOH spending variance	P100	U
Actual fixed overhead	P81,000
Actual labor cost	P60,300
Actual labor hours	8,500

Mercurial Company’s standard costs are as follows:

Direct material	25 pieces @ P5 per piece
Direct labor	2.0 hours @ P7 per hour
Variable overhead
(applied on a machine hour basis)	5.2 hours @ P3.00 per hour
Fixed overhead
(applied on a machine hour basis)	5.2 hours @ P3.50 per hour

Determine the following items:

a.	material purchase price variance
b.	standard quantity allowed for material
c.	total standard cost of material allowed
d.	actual quantity of material used
e.	labor rate variance
f.	standard hours allowed for labor
g.	total standard cost of labor allowed
h.	labor efficiency variance
i.	actual variable overhead incurred
j.	standard machine hours allowed
k.	variable overhead efficiency variance
l.	budgeted fixed overhead
m.	applied fixed overhead
n.	fixed overhead spending variance
o.	volume variance
p.	total overhead variance

Answer rating: 100% (QA)

Certainly Lets calculate each of the requested items a Material Purchase Price Variance MaterialPurchasePriceVariance ActualQuantityActualPrice Actual... View the full answer