Reference no: EM132916485

Questions -

Q1. Calma Company uses a standard cost system. The following budget, at normal capacity, and the actual results are summarized for the month of December:

Budgeted data:

Direct labor hours 24,000

Variable factory OH P 48,000

Fixed factory OH P108,000

Total factory OH per DLH P 6.50

Actual data for December were as follows:

Direct labor hours worked 22,000

Total factory OH P147,000

Standard DLHs allowed for capacity attained 21,000

Using the two-way analysis of overhead variance, what is the uncontrollable variance for December?

Q2. Edco Company produced and sold 45,000 units of a single product last year, with the following results:

Sales revenue $1,350,000

Manufacturing costs:

Variable 585,000

Fixed 270,000

Selling costs:

Variable 40,500

Fixed 54,000

Administrative costs:

Variable 184,500

Fixed 108,000

Edco's operating leverage factor was?

Q3. The Bohol Company uses standard costing. The following data are available for October:

Actual quantity of direct materials used 23,500 pounds

Standard price of direct materials P2 per pound

Material quantity variance P1,000 U

The standard quantity of materials allowed for October production is?