Reference no: EM133187037
Questions -
Q1. During March 2018 Younger Company's direct-materials costs for the manufacture of product T were as follows:
Actual unit purchase price P 6.50
Standard quantity allowed for actual production 2,100
Quantity purchased and used for actual production 2,300
Standard unit price P 6.25
Younger's materials usage variance for March 2016 was
a. P1,250 unfavorable
b. P1,250 favorable
c. P1,300 unfavorable
d. P1,300 favorable
Q2. Information on Rex Co.'s direct material costs for May 2018 is as follows:
Actual quantity of direct materials purchase and used 30,000 kls.
Actual cost of direct materials P 84,000
Unfavorable direct materials usage variance P 3,000
Standard quantity of direct materials allowed for May production 29,000 kls.
For the month of May, what was Rex's direct materials price variance?
a. P2,800 favorable
b. P2,800 unfavorable
c. P6,000 unfavorable
d. P6,000 favorable
Q3. RTW Company uses a standard costing system in connection with the manufacture of a "one size fits all" article of clothing. Each unit of finished product contains 2 meters of direct material. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The cost of the direct material is P3 per meter. The standard direct material cost per unit of finished product is:
a. P4.80
b. P6.00
c. P7.20
d. P7.50
Q4. The following processing standards have been set for TMT Company's clerical workers:
Number of hours per 1,000 papers processed 150
Normal number of papers processed per year ,500,000
Wage rate per 1,000 papers P600
Standard variable cost of processing
1,500,000 papers P900,000
Fixed costs per year P150,000
The following information pertains to the 1,200,000 papers that were processed during 2018:
Total cost P915,000
Labor cost P760,000
Labor hours 190,000
For 2018, TMT's labor rate variance would be:
a. P40,000 unfavorable
b. P32,000 favorable
c. P10,000 unfavorable
d. P0
Q5. The following direct labor information pertains to the manufacture of product MM:
Time required to make one unit 2 direct labor hours
Number of direct workers 50
Number of productive hours per week, per worker 40
Weekly wages per worker P500
Workers' benefits treated as direct labor costs 20% of wages
What is the standard direct labor cost per unit of product MM?
a. P30
b. P24
c. P15
d. P12
Q6. In connection with a standard cost system being developed by Sarsi Company, the following information is being considered with regard to standard hours allowed for output of one unit of product:
Average historical performance for the past three years 1.85 hrs.
Production level to satisfy average consumer
demand over a seasonal time span 1.60 hrs.
Engineering estimates based on attainable performance 1.50 hrs.
Engineering estimates based on ideal performance 1.25 hrs.
To measure controllable production inefficiencies, what is the best basis for Sarsi to use in establishing standard hours allowed?
a. 1.25
b. 1.50
c. 1.60
d. 1.85
Q7. Mahal Company had total underapplied overhead of P15,000. Additional information is as follows:
Variable overhead:
Applied based on standard direct-labor hours allowed P42,000
Budgeted based on standard direct-labor hours 38,000
Fixed overhead:
Applied based on standard direct-labor hours allowed 30,000
Budgeted based on standard direct-labor hours 27,000
What is the actual total overhead?
a. P50,000
b. P57,000
c. P80,000
d. P87,000