Mr. Chan purchased 60,000 lbs. of chemical X for P210,000. During May 2020, Mr. Chan, manufactured 10,000 units of the product. The following information is available for the month of May: Direct materials: Standard for a unit: 5.8 gallons @ P3 per gallon Actual: 57,000 gallons Direct Labor: Standard for a unit: 30 min. @ P9 per DLH Actual: 4,800 DLHS @ P9.10 per DLH Compute the labor rate and efficiency variance.

Mr. Chan purchased 60,000 lbs. of chemical X for P210,000. During May 2020, Mr. Chan, manufactured 10,000 units of the product. The following information is available for the month of May:

Direct materials:

Standard for a unit: 5.8 gallons @ P3 per gallon

Actual: 57,000 gallons

Direct Labor:

Standard for a unit: 30 min. @ P9 per DLH

Actual: 4,800 DLHS @ P9.10 per DLH

Compute the labor rate and efficiency variance.

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