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38. Cartagena Company has a standard cost system in which manufacturing overhead is applied to units
of
products on the basis of machine hours. The company has provided the following factory data:
Actual total overhead cost P260,000
Budgeted xed overhead cost P180,000
Variable overhead rate P2 per hour
Fixed overhead rate P6 per hour
Standard hours allowed for the output 32,000 hours
What was the overhead volume variance for the year?
a. P12,000 favorable
b. P4,000 favorable
c. P4,000 unfavorable Our tutors were helpful last time, right? Ask 섌
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d. P16,000 unfavorable

39. The materials cost variance is composed of Ask Expert Tutors

a. Quantity and e ciency variance You can ask 1 question (will expire 숅)
b. Quantity and price variance
c. Price and mix variances
d. Mix and yield variances

40. Mandocdoc Company installs solar panels on residential houses. The standard material cost for
Type-C house is
P1,250 based on 1,000 units at a cost of P1.25 each. During April, Mandocdoc Company installed solar
panels on 20
Type-C houses, using 22,000 units of materials at a cost of P1.20 per unit, and a total cost of P26,400.
What is Ant
Company's materials spending (price) variance?
a. P1,000 favorable
b. P1,100 favorable
c. P1,400 unfavorable
d. P2,500 unfavorable

41. Information on Delgado Company's direct materials cost is as follows:

Actual units of direct materials used 20,000
Actual direct materials costs 40,000
Standard price per unit of direct materials P 2.10
Direct material quantity variance, favorable P 3,000
What was Delgado's materials price variance?
a. P1,000 favorable
b. P1,000 unfavorable
c. P2,000 favorable
d. P2,000 unfavorable

42. Information on Laren's direct material costs is as follows:

Standard unit price P 3.60
Actual quantity purchased 1,600
Standard quantity allowed for actual production 1,450
Materials purchase price variance, favorable P 240
What was the actual purchase price per unit, rounded to the nearest centavo?
a. P 3.06
b. P 3.11
c. P 3.45
d. P 3. 75

43. If a company follows the practice of isolating variance at the earliest point in time, what would be the
appropriate time to isolate and recognize a direct material price variance?
a. when material is issued to the requesting department or division
b. when material is purchased
c. when material is used in production
d. when purchase order is originated

44. A credit balance in the materials price variance indicates that

a. Actual price exceeds standard price
b. Standard price exceeds actual price
c. Actual quantity exceeds standard quantity
d. Standard quantity exceed actual quantity

45. The Villegas Company uses standard

costing. The following data are available for May:
Actual quantity of direct materials used 23,500 pounds
Standard price of direct materials P 2 per round
Material quantity variance P 1,000 unfavorable
What is the standard quantity of materials allowed for May production?
a. 23,000 pounds
b. 24,000 pounds
c. 24,500 pounds
d. 25,000 pounds

46. Carlita Corporation's direct labor information for product C for the month of May is as follows:
Standard rate P 6.10 per hour
Actual rate paid P 6.00 per hour
Standard hours allowed for actual production 1,500 hours
Labor e ciency variance P 600 unfavorable
What was the actual hours worked?
a. 1,400
b. 1,402
c. 1,598
d. 1,600

47. Bangloy corporation's direct labor costs for the month of May were as follows:
Standard direct labor hours 42,000
Actual direct labor hours 40,000
Direct labor rate variance, favorable P8,400
Standard direct labor rate per hour P6.50
What was Bangloy's direct labor payroll for the month of May?
a. P 243,000
b. P 244,000
c. P 251,600
d. P 260,000

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Items 55 and 56 are based on the following information

San Juan's Company's budgeted xed factory overhead cost is P 50, 000 per month plus a variable
factory 
overhead rate of P 4 per direct labor hour. The standard direct labor hours allowed for October
production is 
P 18, 000. An analysis of the factory overhead indicates that in October, San Juan had an unfavorable
budget 
(controllable) variance of P 1, 000 and an unfavorable volume variance of P 500. San Juan uses a two-
way 
analysis of overhead variance.

55. What is the actual factory overhead measured in October?

a. P 121, 00
b. P 122, 000
c. P 122, 300
d. P 123, 000

56. What is applied (standard) factory overhead in October?

a. P 121, 500
b. P 122, 000
c. P 122, 500
d. P 123, 000

57. Alicbusan Company has standard variable costs as follows:

Materials, 3 pounds at P 4. 00 per pound P 12. 00

Labor, 2 hours at P 10. 00 per hour P 20. 00

Variable overhead, P 7. 50 per labor hour P 15. 00

During September, Alicbusan produced 6, 000 units using 11, 560 labor hours at a total wage of P 113,
870 and incurring P 88, 600 in variable overhead. What is variable overhead e ciency variance?
a. P 4, 400 U
b. P 3, 300 F
c. P 1, 900 U
d. P 1, 400 F

58. Mercado Company uses a standard cost system in which it applies manufacturing overhead to units
of product 
on the basis of direct labor hours. The information below pertains to a recent month's activity:
Denominator (normal) activity 300 hours
Actual activity 350 hours
Standard hours allowed for output 360 hours
Predetermined overhead rate (P 2 variable + P 3 xed) P 5 per hour
What would be the volume variance?
a. P 300 favorable
b. P 180 favorable
c. P 150 favorable
d. P 120 favorable

59. One way of analyzing the variable factory overhead variance is breaking it down into
a. Spending and e ciency variances
b. Spending and rate variances
c. E ciency and volume variances
d. Spending and capacity variances
60. Makahiya Company has a total budgeted xed overhead cost of P 64, 000. Actual production was
15, 000 units; 
normal capacity is 16, 000 units. What was the volume variance?
a. P 4, 000 favorable
b. P 4, 267 favorable
c. P 4, 267 unfavorable
d. P 4, 000 unfavorable

61. The following direct labor information pertains to the manufacture of product Babylove:
Time required to make one unit 2 labor hours
Number of direct workers 50
Number of productive hours per week, per worker 40
Weekly wages per worker P 500
Workers' bene t treated as direct labor costs 20 % of wages
What is the standard direct labor cost per unit of product Babylove?
a. P 30
b. P 24
c. P 15
d. P 12

62. Which one of the following management practices involves concentrating on areas that deserve
attention and 
placing less attention on areas operating as expected?
a. Management by objectives
b. Responsibility accounting
c. Benchmarking
d. Management by exception

63. Which item is not used to compute the xed overhead volume variance?
a. Standard xed cost per unit
b. Budgeted xed overhead
c. Actual xed overhead
d. Actual quantity produced

64. Multiple regression analysis involves studying how

a. One variable reacts to many variables
b. One variable reacts to another variable
c. Many variables react to many variables
d. Many variables react to one variable

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48. The exible budget of Decibar Company is summarized below: Percent of normal operating operating capacity 80%
90% 100% 110% Variable overhead P21,000 P23,000 P25,000 P27,000 Fixed overhead 50,000 50.0000 50.000 50,000
Total Factory Overhead PZ1.000 P73.000 P75,000 P77.000 100 units of product are produced when the company

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