PRACTICE PROBLEM 2-STANDARD COSTING AND VARIANCE A NALYSIS Solve the following problems. Show your solution and submit in pdf format. 1. Sprinter Company has the following standard material and labor quantities and costs for one unit of Product NMIX #125: Material 1.85 kilograms @ P157.50 per KILOGRAMS Labor 0.04 hours @ P540 per hour During July, the purchasing agent found a "good deal" on the raw material needed for Product NMIX #125 and bought 100.000 kilograms of material at P141.75 per pound. In July, the company produced 48.000 units of Product NMIX #125 with the following material and labor usage: Material 95,000 kilograms Labor 2.200 hours @ P544.40 (due to a renegotiated labor contract) Required: 1. What is the standard quantity of material and the standard labor time for July? b. Calculate the material and labor variances for July c. Did the purchasing agent really make a good deal" on the raw material? Justify your answer. 2. Some-song Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3.0 meters P495 per meter P1.485 Direct labor ? hrs ? per hour During April, the company purchased direct materials at a cost of P5.008,500 all of which were used in the production of 3.200 units of product. In addition, 4,900 direct labor-hours were worked on the product during the month. The cost of this labor time was P4.299,750. The following variances have been computed for the month: Materials quantity variance Labor spending variance. Labor efficiency variance P198,000 U ..P 20.250 F P 90,000 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for April. b. Compute the price variance and the spending variance. 2. For direct labor a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production c. Compute the standard hours allowed per unit of product. (Hint: You muy find it helpful to refer to Exlubis 9-11 and 9-12) PRACTICE PROBLEM 2-STANDARD COSTING AND VARIANCE ANALYSIS Solve the following problems. Show your solution and submit in pdf format. 1. Sprinter Company has the following standard material and labor quantities and costs for one unit of Product NMIX #125: Material 1.85 kilograms @ P157.50 per KILOGRAMS Labor 0.04 hours @ P540 per hour During July, the purchasing agent found a "good deal" on the raw material needed for Product NMIX #125 and bought 100,000 kilograms of material at P141.75 per pound. In July, the company produced 48,000 units of Product NMIX #125 with the following material and labor usage: Material 95,000 kilograms Labor 2,200 hours @ P544.40 (due to a renegotiated labor contract) Required: a. What is the standard quantity of material and the standard labor time for July? b. Calculate the material and labor variances for July. c. Did the purchasing agent really make a good deal" on the raw material? Justify your