Reference no: EM133055268
Question - A manufacturing company has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator level of activity 6,300 MHs
Overhead costs at the denominator activity level:
Variable overhead cost P34,020
Fixed overhead cost P120,960
The following data pertain to operations for the most recent period:
Actual hours 6,800 MHs
Standard hours allowed for the actual output 6,384 MHs
Actual total variable overhead cost P38,080
Actual total fixed overhead cost P122,710
1. What is the predetermined overhead rate to the nearest cent?
A) P22.79 B) P24.60 C) P25.52 D) P23.65
2. How much overhead was applied to products during the period to the nearest peso?
A) P154,980 B) P157,046 C) P167,280 D) P160,790
3. What was the variable overhead spending variance for the period to the nearest peso?
A) P4,060 F B) P4,060 U C) P1,360 U D) P1,360 F
4. What was the variable overhead efficiency variance for the period to the nearest peso?
A) P2,330 U B) P2,246 U C) P4,060 U D) P1,277 F
5. What was the fixed overhead budget variance for the period to the nearest peso?
A) P137 F B) P1,750 U C) P7,850 U D) P7,507 F
6. What was the fixed overhead volume variance for the period to the nearest peso?
A) P9,600 F B) P7,987 U C) P1,613 F D) P1,615 U