Maximum plant capacity 40,000 units
Normal Capacity 36,000 units
Fixed factory overhead P54000
Fixed marketing & administrative expense P20000
Sales price per unit P10
Standard variance manufacturing cost per unit P4
Variable marketing expense per unit sold P1
For the year,the following data are available:
Budgeted Production 36000 units
Actual production 30000 units
Sales 28000 units
Finished goods inventory, January 1 1000 units
Unfavorable variances from standard
variable manufacturing costs P 5,000