Reference no: EM132979615

Questions -

Q1) Sky Castle Manufacturing Company produces cleaning solvent. The company employs both skilled and unskilled workers. To produce one 55-gallon drum of solvent requires Materials A and B as well as skilled labor and unskilled labor. The standard and actual material and labor information is presented below:

Standard-

Material A: 30.25 gallons @ P12.50 per gallon

Material B: 24.75 gallons @ P20.00 per gallon

Skilled Labor: 4 hours @ P120.00 per hour

Unskilled Labor: 2 hours @ P 70.00 per hour

Actual-

Material A: 10,716 gallons purchased and used @ P15.00 per gallon

Material B: 17,484 gallons purchased and used @ P19.00 per gallon

Skilled labor hours: 1,950 @ P119.00 per hour

Unskilled labor hours: 1,300 @ P 71.50 per hour

During the current month, Sky Castle Manufacturing Company manufactured 500 55-gallon drums.

How much is the total material mix variance?

A. P35,955 unfavorable

B. P35,955 favorable

C. P48,645 unfavorable

D. P48,645 favorable

Q2) Sky Castle Manufacturing Company has total underapplied overhead variance of P2,582.50. The budget variance had been P2,662.50 unfavorable. Efficiency variance, then, was P137.50 favorable. Upon review of operations, it was ascertained that the actual variable overhead amounted to P46,000. The standard overhead rates are P55 per machine hour for variable overhead and P32 per machine hour for fixed overhead. Actual overhead machine hours, both for variable and fixed, is 800 machine hours.

How much was the entity's actual fixed overhead?

A. P24,800

B. P25,235

C. P25,600

D. P26,400