PRACTICE PROBLEM 1 (BY PAIR) Solve the problem below with your partner. Show your solution and submit in pdf format. Malaking Company manufactures several products. The standards relating to one of its products are shown below, along with actual cost data for June Standard Cost per Actul Cost per Limit P 324.00 P 356.40 72.00 Direct materials: Standard: 1.80 ft XP180.00 per foot Actual: 1.80 ft at P198.00 per foot Direct labor Standard: 0.90 hr x P1,080.00per hr Actual: 0.92 hr x P1,050,00 per hr Variable overhead: Standard: 0.90 hr P300.00 per hr Actual: 0.92 hr x P270.00 per hr Total cost per unit 966.00 270.00 P1,566.00 248.40 P1,570.80 The production superintendent was pleased when he saw this report and commented: "This P4.80 excess cost is well within the 2 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning of ending inventories of materials. Required: 1. Compute the following variances for June: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. How much of the P4.80 excess unit cost is traceable to cach of the variances computed in (1) above. 3. How much of the PO,08 excess unit cost is traceable to apparent inefficient use of labor time? 4. Do you agree that the excess unit cost is not of concern? (Hint