Reference no: EM132561766

Question 1: SALITA Processors, Inc. provides computer processing services, and relevant data set up by the firm's management are shown below:

No. of pages per hour, 20.

No. of hours per month, 500.

Variable costs per hour, P30.

Fixed costs per month, P10,000.

For the month of May, 2000, 12000 pages are generated in 450 hours. The actual variable costs totaled P13,200, while the actual fixed costs equaled the estimated amount. The total standard cost for May was:

a. P25,000

b. P27,500

c. P30,000

d. P31,500

Question 2: For the period just ended, LAMBANA Co. budgeted its variable overhead at P40 per direct labor hour and fixed overhead at P480,000. Budgeted production volume was 8,000 units and the production time, which was the basis for allocation of variable and fixed overhead, was budgeted at .80 hour per unit. The actual results for the period were: fixed overhead, P552,000; variable overhead, P283,480; units produced, 7,460; direct labor hours used, 5,595. What was the budgeted variable overhead for the actual volume attained?

a. P223,800

b. P226,784

c. P238,720

d. P283,480