Reference no: EM133064339
Question -
Q1) Wilms, Inc. uses a standard cost system. Overhead cost information for product A for the month of November is as follows:
Total actual overhead incurred, P12,600
Fixed overhead budgeted, P3,300
Total standard overhead rate per direct labor, P4.00
Variable overhead rate per direct labor hour, P3.00
Standard hours allocated for actual production, 3,500
What is the overall (or net) overhead variance?
A. P1,200 unfavorable
B. P1,400 unfavorable
C. P1,400 favorable
D. P1,200 favorable
Q2) The data below relate to the month of November for Badong, Inc. which uses a standard cost system:
Actual direct labor cost, P43,400
Actual hours used, 14,000
Standard hours allowed for good output, 15,000
Direct labor rate variance - debit, 1,400
Actual total overhead, 32,000
Budgeted fixed cost, 9,000
Normal activity in hours, 12,000
Total application rate per standard direct labor hour, 2.25
Badong uses a two-way analysis of overhead variance.
What was Badong's direct labor usage variance for November?
a. P3,000 unfavorable
b. P3,000 favorable
c. P3,200 favorable
d. P3,200 unfavorable