Silva Plastics Company has established standard cost for a unit of manufactured product as follows: Materials (3 kgs. @ P9) Labor (1 hour @ P84) Variable overhead (1 hour @ P24) P27.00 84.00 24.00...

Extracted text: Silva Plastics Company has established standard cost for a unit of manufactured product as follows: Materials (3 kgs. @ P9) Labor (1 hour @ P84) Variable overhead (1 hour @ P24) P27.00 84.00 24.00 Fixed overhead (1 hour @ P36) 36.00 Total standard unit cost P171.00 At normal operating capacity, 100,000 units of product should be manufactured in a year. Costs data pertaining to the operations for the year are summarized below: P1,908,000 Materials purchased (200,000 kgs.) Materials used in production 185,000 kgs. Labor hours 58,000 Labor rate P90.00 per hour Factory overhead- Variable P1,380,000 Fixed P3,600,000 During the year, 60,000 units of product were put into production and were completed. There were no units in process at the beginning or at the end of the year. There are also no inventories of raw materials or finished goods at the beginning of the year. REQUIRED: 1. Determine the materials and labor variances graphically and by formula. 2. Prepare the flexible overhead budget using the format of page 217. 3. Determine the overhead variances using the 2-way method.