Reference no: EM132549236

Question 1. The cost accountants at the Austria Company regressed total overhead costs and direct labor hours for the past 30 - months and reported the following results:

Slope P 42.27

Intercept P 596.36

Correlation coefficient 0.936

What is the estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period?

(Rounded to the nearest peso)

a. P 10, 534

b. P 9, 882

c. P 9, 230

d. P 8, 617

Question 2. Umibig Company is currently producing 100,000 pairs of shoes per year. The firm estimates overhead cost as P 5.00 per unit of output and total variable cost as P 2, 200, 000. Assuming a linear function and overhead cost as purely fixed, what is the correct total cost function for Umibig?

a. Y = 500, 000 + 22 X

b. Y = 100, 000 + 22 X

c. Y = 500, 000 + 4.4 X

d. Y = 100, 000 + 4.4 X

Question 3. Given the following information:

Total direct materials price variance P 1, 600 U

Total direct materials flexible budget variance 1, 180 U

Total direct materials yield variance 1, 940 U

What is the direct materials mix variance?

a. P 420 F

b. P 420 U

c. P 2, 360 F

d. P 2, 360 U

Question 4. When sales total 50,000 units, a company's flexible budget shows an expected variable delivery expense of P160,000 and fixes costs of P 100,000 for straight-line depreciation. If sales total 52,000 units, the actual delivery expenses is P 163,000 and the actual depreciation is P103, 000, what will be the budget variance?

Delivery Depreciation         Delivery Depreciation

a. P3,400 F P3,000 U      c. P3,000 U P3,000 U

b. P3,400 F P1,000 F         d, P3,000 U P1,000 F