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Pepa Pandesal uses standard cost system for its production of pandesal. Pandesal is produced by mixing up the following major ingredients: flour, sugar, salt, water and eggs; All ingredients are inventoried per kg (for ease of accounting). Pandesal are sold per piece, and to produce one piece of bread needs 25grams. Materials standards and costs for the production of 800grams (32pcs) of output are: Ingredients Grams Cost per Gram (Php) Amount Flour 512 0.05 25.60 Sugar 128 0.11 14.08 Eggs 100 0.10 10.00 Salt 5 0.01 0.05 Water 128 0.05 6.40 Water 128 0.05 6.40 Total Input 873 56.13 Output 800 The monthly factory overhead budget for a normal capacity level of 7,200 direct labor hours is as follows: Variable Overhead P 12,500 Fixed Overhead 30.000 Total P 42,500 To convert 873 cups of ingredients into 800 grams of output (the bread mixture before it is baked) requires 18 direct labor hours at P6.50 per direct labor hour. Factory overhead is applied on a direct labor hour basis. Actual data for the month of September follows: Actual data for the month of September follows: The bakery has been able to produce 15,008 pcs of pandesal, with cost as follows: Direct Labor 8,000 hours at P60,000 Variable Overhead 13,000 Fixed Overhead 30,000 Materials Purchased Material beginning invty Cost / Quantity Quantity Kg kg Flour 220 25 50.00 P. Sugar 50 10 55.00 Sugar 50 10 55.00 Eggs 40 15 60.00 Salt 1.5 P20.00 1.0 Water 40 P25.00 20 No inventories of work in process at the beginning of the month existed. The materials requisitioned is equal to the total inventory after purchase. The material price variance is assumed to be realized at the time of purchase NOTE: no rounding off in between calculations. sample answer format sample-1,000.15 For 1,500.50 U (take note of the space between the number and the capital letter for the favorable or unfavorable variance) limit to 2 decimal places Required: Required: Material Purchase Price Variance Material Mix Variance Material Yield Variance Factory Overhead Spending Variance Factory Overhead Efficiency Variance Factory Overhead Production Volume Variance