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C. Standard Costing and Variance Analysis. A4 Labs, Inc. makes a single product which has the following standards: Direct materials - 2.5 ounces at P20 per ounce Direct labor = 1.4 hours at 112.50 per hour Variable manufacturing overhead at ? (show solution for this) Variable manufacturing overhead is assigned on the basis of direct labor hours. The following data are available for October: a. 3,750 units of compound were produced during the month. b. There was no beginning direct materials inventory. C. The ending direct materials inventory was 2,000 ounces. d. Direct materials purchased - 12,000 ounces P225,000 e. Direct labor hours worked = 5,600 hours at a cost of P67,200. f. Variable manufacturing overhead costs incurred amounted to P18,200 g. Variable manufacturing overhead applied to products - P18,375. Required: Compute for the following and indicate whether the variance is favorable or unfavorable. 1. Direct materials price variance 2. Direct materials quantity variance 3. Direct labor efficiency variance 4. Variable overhead spending variance 5. Variable overhead efficiency variance