Reference no: EM132855198
Questions -
Q1. Which of the following is not a factory overhead allocation method?
a. Single Plantwide Rate Method
b. Multiple Production Department Rate Method
c. Traditional Costing Method
d. Activity-Based Costing Method
Q2. Which of the following does not support managerial decisions involving accurate product costing?
a. product constraints
b. emphasis of a product line
c. product mix
d. product price
Q3. Lasso Corp. budgeted P250,000 of overhead cost for 2019. Actual overhead costs for the year were P240,000. Lasso's plant-wide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. Budgeted units to be produced are 100,000 units. Lasso's plant-wide factory overhead rate for 2019 is:
a. P1.25 per unit
b. P6.00 per machine hour
c. P6.25 per machine hour
d. P5.00 per machine hour
Q4. The Nite Lite Factory has determined that its budgeted factory overhead budget for the year is P6,750,000 and budgeted direct labor hours are 5,000,000. Using the single plantwide factory overhead rate based on direct labor hours, determine the factory overhead rate for the year?
a. P1.35
b. P1.20
c. P0.74
d. cannot be determined
Q5. The Nite Lite Factory has determined that its budgeted factory overhead budget for the year is P6,750,000 and budgeted direct labor hours are 5,000,000. If the actual direct labors for the period are 180,000 and direct labor hours is the allocation base, the factory overhead allocation using the single plantwide factory overhead rate is?
a. P375,000
b. P133,333
c. P243,000
d. cannot be determined
Q6. Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is P640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will have 275,000 direct labor hours and desk lamp production will require 125,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the small lamp production if the actual direct hours for the period is 290,000?
a. P220,690
b. P400,000
c. P440,000
d. P464,000
Q7. Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is P640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will have 275,000 direct labor hours and desk lamp production will require 125,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the desk lamp production if the actual direct hours for the period is 121,000?
a. P220,690
b. P200,000
c. P193,600
d. P279,000
Q8. Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is P640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will use 3 direct labor hours for each unit and desk lamp production will require 1.25 direct labor hours for each unit. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the desk lamp production if the actual production for the period is 121,000 units?
a. P151,250
b. P242,000
c. P580,800
d. P363,000
Q9. Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant budget is P640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will use 3 direct labor hours for each unit and desk lamp production will require 1.25 direct labor hours for each unit. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the small lamp production if the actual production for the period is 108,000 units?
a. P518,400
b. P324,000
c. P580,800
d. P363,000
Q10. The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and production. The overhead budget for the finishing department is P550,000, using 500,000 direct labor hours. The overhead budget for the production department is P400,000 using 80,000 direct labor hours. If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production, what is the total amount of factory overhead to be allocated to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 26,000 units are produced?
a. P540,000
b. P300,000
c. P400,000
d. P288,600