Reference no: EM132974794

Questions -

Q1) Sky Castle Manufacturing Company's standard labor requirements provide that each unit of Product A is done at 3.50 hours. The standard rate per hour is P70. During the period, the entity completed 2,650 units of Product A. The following facts were proven in the analysis of operations:

The entity had an unfavorable material price variance due to an immediate decision to use a higher quality material used in the manufacturing of Product A.

There was also an unfavorable material quantity variance due to rework done in some units. The workers were not accustomed with the new material quality. This also led to an unfavorable labor efficiency variance of P185,500.

There was no labor rate variance.

From the information above, how much is the actual rate paid to the workers in doing Product A during the period?

A. P65.00

B. P68.75

C. P70.00

D. P72.50

Q2) Sky Castle Manufacturing Company offers vintage television-styled phone holders at P250 per phone holder. Variable costs amount to 70% of sales and fixed costs amount to P150,000.

In order for the entity to enjoy net income before tax of P120,000, how many phone holders shall they sell?

A. 857 phone holders

B. 1,542 phone holders

C. 2,000 phone holders

D. 3,600 phone holders