1. For the year 2018, the gross margin of Melody Co. a.

P90,000
was P96,000; the cost of goods manufactured was b. P140,000
P340,000; the beginning inventories of work in c. P144,000
process and finished goods were P28,000 and d. P170,000
P45,000, respectively; and the ending inventories of
work in process and finished goods were P38,000 5. For the month of March 2018, cost of goods
and P52,000, respectively. The sales of Melody Co. manufactured was
for 2018, must have been a. P218,000
a. P419,000 b. P224,000
b. 429,000 c. P230,000
c. 434,000 d. P236,000
d. 436.000
Items 6 and 8 are based on the following data of Monch
2. The following information was taken from Jherome Company for the month of March 2018:
Company's accounting records for the year ended March 1 March 31
December 31, 2018. 6.
Materials P40,000 P50,000 T
Increase in raw materials inventory P 15,00 Work in process 25,000 35,000
Decrease in finished goods inventory 35,00 Finished goods 60,000 70,000
Raw materials purchased 430,00
Direct labor payroll 200,00 March 1 to 31, 2018
Factory overhead 300,00
There was no work-in-process inventory at the Direct labor cost P120,000
beginning or end of the year. Jherome Company's 2018 Factory overhead applied 108,000
cost of goods sold is Cost of goods sold 378,000
a. P950,000 he total amount of direct materials purchased
b. P965,000 during March:
c. P975,000 a. P50,000
d. P995,000 b. P170,000
c. P180,000
Items 3 through 5 are based on the following d. P220,000
information pertaining to Heart Company's
manufacturing operations. 7. The cost of goods manufactured during March, 2018:
a. P378,000
Inventories 3/1/18 3/3/18 b. P388,000
Direct materials P P36,000 P30,000 c. P398,000
Work in process 18,000 12,000 d. P428,000
Finished goods 54,000 72,000
Some selected sales and cost data for Tapsy
Additional information for March 2018: Manufacturing Company are given below:
Direct materials purchased P 84,000
Direct materials used P 100,000
Direct labor payroll 60,000
Direct labor 150,000
Direct labor rate per hour 7.50
Factory overhead (40% variable) 75,000
Factory overhead rate/direct labor hour 10.00
Selling and administrative expenses (50% 120,000
direct, 60% variable
3. For the month of March 2018, prime cost was
a. P90,000
8. Prime cost was:
b. P120,000
a. P175,000
c. P144,000
b. P250,000
d. P150,000
c. P130,000
d. P225,000
9. Conversion cost was:
4. For the month of March 2018, conversion cost was a. P150,000
 b. P225,000 gross margin was P220,000. If the ending inventory
c. P250,000 of finished goods was P30,000, the beginning
d. P270,000 inventory of finished goods must have been:
a. P10,000
10. Direct cost was: b. P50,000
a. P225,000 c. P130,000
b. P250.000 d. P150,000
c. P310,000
d. P325,000 17. The gross margin for Cruise Company for 2018 was
P325,000 when sales were P700,000. The Finished
11. Indirect cost was: Goods inventory,beg was P60,000 and the Finished
a. P75,000 Goods inventory, end was P35,000. The cost of
b. P135,000 goods manufactured was:
c. P195,000 a. P300.000
d. P325,000 b. P350,000
c. P230,000
12. Product cost was: d. P375,000
a. P135,000
b. P250,000 18. During the month of January. F Co’s direct labor cost
c. P325,000 totaled P36,000, and direct labor cost was 60% of
d. P370,000 prime cost. If total mfg. costs during January were
P85,000, the factory overhead was:
13. Variable cost was: a. P24,000
a. P250,000 b. P25,000
b. P280,000 c. P49,000
c. P352.000 d. P60,000
d. P370,000
19. During 2018. There was no change in the beginning
14. During 2018, there was no change in either the raw or ending balance in the Materials inventory
material or the work in process beginning and account for the DL Co. However, the WP inventory
ending inventories. However finished goods, which account increased b P15,000 and the FG inventory
had a beginning balance of P25,000, increased by account decreased by P10,000. If purchases of raw
P15,000. If the manufacturing costs incurred totaled materials were P100,000 for the year, direct labor
P600,000 during 2018. The goods available for sale costs was P150,000, and manufacturing overhead
must have been: cost was P200,000, the cost of goods sold for the
a. P585,000 year would be:
b. P600,000 a. P435,000
c. P610,000 b. P445,000
d. P625,000 c. P465,000
15. During the month of May, 2018, Candid d. P475.000
Manufacturing Co. incurred P 30,000, P40,000, and
P20,000 of direct material, direct labor and factory 20. During the month of March 2018, Nape Co. used
overhead costs, respectively. If the cost of goods P300,000 of direct materials. At March 31, 2018,
manufactured was P95,000 in total and the ending Nape’s direct materials inventory was P50,000 more
work in process inventory was P15,000. The than it was at March 1, 2018. Direct material
beginning inventory of work in process must have purchases during the month of March 2018
been: amounted to:
a. P10,000 a. P0
b. P20,000 b. P250,000
c. P110,000 c. P300,000
d. P25,000 d. P350,000
16. The Lion Company’s cost of goods manufactured
was P120,000 when its sales were P360,000 and its
21. Calculate the manufacturing overhead incurred for Company for the period:
F&B Co.
Direct labor cost incurred P2 Direct labor P2,40
Direct materials used 11 Factory overhead 1,700
Beginning work in process 0 Work in process inventory,beginning 11,00
Ending work in process 30 Work in process inventory, end 5,000
Finished goods completed 17 Cost of goods manufactured 16,00
a. P60 0 Sales 50,00
b. P410 Finished goods inventory, beginning 9,000
c. P560 Finished goods inventory, end 8,000
d. P580 Total selling, general, and administrative 14,00
costs 0
26. The amount of direct materials put into production
22. Determine the sales for the year. during the period
a. P6,700
Gross profit P280,0 b. P5,600
Ending inventory
c. P4,800
Goods available for sale
d. P5,900
a. P300,000 180,00
b. P340,000 27. The amount of increase in retained earnings during
c. P400,000 the period
d. P460,000 a. P14,000
23. Given the following information: b. P33,000
c. P25,000
Finished goods beginning P26,00 d. P19,000
Finished goods ending 37,000
Cost of goods manufactured 127,00 Arizona Manufacturing Company reported the following
What is the cost of goods sold? 0 year-end information
a. P115,500
b. P138,500 28. Work in process inventory, January 1 P180,0
c. P153,000 Raw materials inventory, January 1 50,000
d. P116,000 Work in process inventory, December 150,00
Raw materials inventory, December 31 80,000
Unitlo Manufacturing Company developed the Raw materials purchased 160,00
following data for the current year. Direct labor 150,00
Factory overhead applied 100,00
24. Work in process inventory, January 1 P40,00
Factory overhead control 120,00
Direct materials used 0
24,000
0
Actual factory overhead 48,000 Cost of goods manufactured for the year is
Applied factory overhead 36,000 a. P380,000
Cost of goods manufactured 44,000 b. P410,000
Total manufaturing costs 120,00 c. P350,000
Uniflo Company's direct labor cost for the year is d. P440,000
a. P12,000
b. P60,000
c. P36,000
d. P48,000

25. Uniflo Company’s work in process inventory,

December 31 is
a. P116,000
b. P80,000
c. P76,000
d. P36,000
The following data relate to Maxine Manufacturing Alabama Corporation reported the following for the
year. WP inventory, beg. - P90,000; cost of goods Howell Corporation has a job order cost system. The
manufactured - P258,000; FG inventory, beg – P126,000; following debits (credits) appeared in Work in Process
WP inventory.end - P110,000; FG inventory, end for the month of July:
-P132,000.
July 1, balance P12,000
29. Cost of goods sold for Alabama Corporation during July 31, direct materials 40,000
the year July 31, direct labor 30,000
a. P252,000 July 31, factory overhead 27,000
b. P264.000 July 31, to finished goods (100,000)
c. P232,000
d. P126,000 Howell applies overhead to production at a
predetermined rate of 90% based on the direct labor
30. Total manufacturing costs for Alabama Corporation cost. Job 1040, the only job still in process at the end of
a. P278,000 July, has been charged with factory overhead of P2,250.
b. P368,000
c. P298.000 33. What was the amount of direct materials charged to
d. P238,000 Job 1040?
a. P6,750
31. Cherokee Company applies factory overhead on the b. P2,250
basis of direct labor hours. Estimate and actual data c. P2,500
for direct labor and overhead for the year are as d. P4,250
follows: e. P9,000
Estimate Actual
Direct labor hours 600,000 650,000 Valentino Corporation makes aluminum fasteners.
Factory overhead costs P720,000 P760,000 Among Valentino's 19-- manufacturing costs were:
The factory overhead for Cherokee for the year is:
a. overapplied by P20,000 Wages and salaries:
b. overapplied by P40,000 Machine operators P80,000
c. underapplied by P20,000 Factory supervisors 30,000
d. underapplied by P40,000 Machine mechanics 20,000
e. neither underapplied nor overapplied
34. Direct labor amounted to:
a. P50,000
32. The Waitkins Company estimated Department A's b. P100,000
overhead at P255,000 for the period based on an c. P110,000
estimated volume of 100,000 direct labor hours. At d. P130,000
the end of the period, the factory overhead control e. none of the above
account for Department A had a balance of
P265,500; actual direct labor hours were 105,000. Rudolpho Corporation makes aluminum fasteners.
What was the over- or under-applied overhead for Among Rudolpho's 19-- manufacturing costs were:
the period?
a. P2,250 Materials and supplies:
b. P(2,250) Aluminum P400,000
c. P15,000 Machine parts 18,000
d. P(15,000) Lubricants for machines 5,000
e. P(5,000)
35. Direct materials amounted to:
a. P23,000
b. P400,000
c. P405,000
d. P418,000
e. P423,000
Selected cost data (in thousands) concerning the past J. D. Doonesbury Company manufactures tools to
fiscal year's operations of the Moscow Manufacturing customer specifications. The following data pertain to
Company are presented below. Job 1501 for April:

Inventories Beginning Ending Direct materials used P4,200

Materials P75 P85 Direct labor hours worked 300
Work in process 80 30 Direct labor rate per hour 8.00
Finished goods 90 110 Machine hours used 200
Applied factory overhead rate per machine hour P15.00
Materials used, P326
Total manufacturing costs charged to production during 40. What is the total manufacturing cost recorded on
the year (including direct materials, direct labor, and Job 1501 for April?
factory overhead applied at the rate of 60% of direct a. P9,600
labor cost), P686. b. P10,300
Cost of goods available for sale, P826. c. P11,100
Selling and general expenses, P25. d. P5,400
e. P8,800
36. The cost of direct materials purchased during the
year amounted to: Brandt Company manufactures wood file cabinets. The
a. P360 following information is available for June 2018:
b. P316
c. P336 Beginning Ending
d. P411 Raw Material Inventory P6,000 P7,500
e. none of the above Work in Process Inventory 17,300 11,700
Finished Goods Inventory 21,000 16,300
37. Direct labor costs charged to production during the
year amounted to: Direct labor is P9.60 per hour and overhead for the
a. P216 month was P9,600. 1,500 direct labor hours. P21,000 of
b. P135 raw material was purchased.
c. P225
d. P360 41. Compute total manufacturing costs for June.
e. none of the above a. P58,500
b. P46,500
38. The cost of goods manufactured during the year c. P43,500
was: d. P43,100
a. P736
b. P716 42. What are prime costs and conversion costs?
c. P636 a. P29,100 and P33,900
d. P766 b. P33,900 and P24,000
e. none of the above c. P33,900 and P29,100
d. P24,000 and P33,900
39. The cost of goods sold during the year was:
a. P716 43. Cost of Goods Manufactured is:
b. P691 a. P49,100
c. P801 b. P45,000
d. P736 c. P51,000
e. none of the above d. P49,500

44. How much is Cost of Goods Sold?

a. P 64,500
b. P 59,800
c. P 38,800
d. P 53,800
45. Davis Company manufacturers desks. The beginning d. P 72,000
balance of Raw Material Inventory was P4,500; raw 50. For March, Cost of Goods Manufactured was
material purchases of P29,600 were made during a. 118,000
the month. At month end, P7,700 of raw material b. 115,000
was on hand. Raw material used during the month c. 112,000
was d. 109,000
a. P 26,400
b. P 34,100
c. P 37,300 Pitino Company has a beginning inventory of direct
d. P 29,600 materials on March 1 of P30,000 and an ending
inventory on March 31 of P36,000. The following
46. Urban Company manufacturers tables. If raw additional manufacturing cost data were available for
material used was P 80,000 and Raw Material the month of March:
Inventory at the beginning and end of the period,
respectively, was P 17,000 and P 21,000, what was Direct materials purchased P84,000
amount of raw material was purchased? Direct labor 60,000
a. P 76,000 Factory overhead 80,000
b. P 118,000
c. P 84,000 51. During March, prime cost added to production was:
d. P 101,000 a. P140,000
b. P138,000
47. Putnam Company manufacturers computer stands. c. P144,000
What is the beginning balance of Finished Goods d. P150,000
Inventory if Cost of Goods Sold is P 107,000; the e. none of the above
ending balance of Finished Goods Inventory is P
20,000; and Cost of Goods Manufactured is P 52. During March, conversion cost added to production
50,000 less than Cost of Goods Sold? was:
a. P 70,000 a. P80,000
b. P 77,000 b. P144,000
c. P 157,000 c. P140,000
d. P 127,000 d. P138,000

Sharp Enterprises Ziffel Company had the following account balances

Inventories: March 1 March 31 and results from operations for the month of July:
Raw material P 18,000 P 15,000 direct materials consumed, P10,400; direct labor,
Work in process 9,000 6,000 P8,000; factory overhead, P8,800; July 1, work in
Finished goods 27,000 36,000 process inventory, P2,400; July 31, work in process
inventory, P1,800; finished goods inventory, July 1,
Additional information for March: P1,200; finished goods inventory, July 31, P1,000.
Raw material purchased P 42,000
Direct labor payroll 30,000 53. The total manufacturing cost for the month of July
Direct labor rate per hour 7.50 was:
Overhead rate per direct labor hour 10.00 a. P27,800
48. For March, prime cost incurred was b. P28,000
a. P 75,000 c. P18,400
b. P 69,000 d. P27,200
c. P 45,000
d. P 39,000 54. The cost of goods manufactured was:
a. P27,200
49. For March, conversion cost incurred was b. P28,000
a. P 30,000 c. P27,800
b. P 40,000 d. P26,600
c. P 70,000
 Overhead P37,200
59. Refer to Zenith Corporation. Assume that Zenith has
underapplied overhead of P10,000 and that this
55. The cost of goods sold was: amount is immaterial. What is the balance in Cost of
a. P27,200 Goods Sold after the underapplied overhead is
b. P28,000 closed?
c. P27,800 a. P133,650
d. P27,600 b. P123,650
c. P143,650
56. Reno Corporation uses a predetermined overhead d. P137,803
application rate of P.30 per direct labor hour. During
the year it incurred P345,000 dollars of actual 60. Refer to Zenith Corporation. Assume that Zenith has
overhead, but it planned to incur P360,000 of overapplied overhead of P25,000 and that this
overhead. The company applied P363,000 of amount is material. What is the balance in Cost of
overhead during the year. How many direct labor Goods Sold after the overapplied overhead is
hours did the company plan to incur? closed?
a. 1,150,000 a. P123,267
b. 1,190,000 b. P144,033
c. 1,200,000 c. P158,650
d. 1,210,000 d. P108,650

Cajun Company. uses a job order costing system. During

The records of Zenith Corporation revealed the April 2018, the following costs appeared in the Work in
following data for the current year. Process Inventory account:
Work in Process P 73,150
Finished Goods 115,000 Beginning balance P24,000
Cost of Goods Sold 133,650 Direct material used 70,000
Direct Labor 111,600 Direct labor incurred 60,000
Direct Material 84,200 Applied overhead 48,000
Cost of goods manufactured 185,000
57. Refer to Zenith Corporation. Assume, for this Cajun Company applies overhead on the basis of direct
question only, actual overhead is P98,700 and labor cost. There was only one job left in Work in
applied overhead is P93,250. Manufacturing Process at the end of April which contained P5,600 of
overhead is: overhead.
a. overapplied by P12,900
b. underapplied by P18,350 61. What amount of direct material was included in this
c. overapplied by P5,450 job?
d. underapplied by P5,450 a. P4,400
b. P4,480
58. Refer to Zenith Corporation. Assume that Zenith has c. P6,920
underapplied overhead of P37,200 and that this d. P8,000
amount is material. What journal entry is needed to
close the overhead account? (Round decimals to Quest Co. is a print shop that produces jobs to customer
nearest whole percent.) specifications. During January 2018, Job #3051 was
a. Debit Work in Process P8,456; Finished Goods worked on and the following information is available:
P13,294; Cost of Goods Sold P15,450 and credit Direct material used P2,500
Overhead P37,200 Direct labor hours worked 15
b. Debit Overhead P37,200 and credit Work in Machine time used 6
Process P8,456; Finished Goods P13,294; Cost of Direct labor rate per hour P7
Goods Sold P15,450 Overhead application rate per hour of machine time P18
c. Debit Work in Process P37,200 and credit
Overhead P37,200 62. What was the total cost of Job #3051 for January?
d. Debit Cost of Goods Sold P37,200 and credit a. P2,713
 b. P2,770
c. P2,812
d. P3,052
Alpha Co. uses a job order costing system. At the Products at Redd Manufacturing are sent through two
beginning of January, the company had two jobs in production departments: Fabricating and Finishing.
process with the following costs: Overhead is applied to products in the Fabricating
Department based on 150 percent of direct labor cost
Direct Material Direct Labor Overhead and P18 per machine hour in Finishing. The following
Job #456 P3,400 P510 P255 information is available about
Job #461 1,100 289 ? Job #297:

Alpha pays its workers P8.50 per hour and applies Fabricating Finishing
overhead on a direct labor hour basis. Direct material P1,590 P580
Direct labor cost ? 48
63. What is the overhead application rate per direct Direct labor hours 22 6
labor hour? Machine hours 5 15
a. P 0.50 Overhead applied 429 ?
b. P 2.00
c. P 4.25 67. What is the total cost of Job #297?
d. P30.00 a. P2,647
b. P3,005
64. How much overhead was included in the cost of c. P3,093
Job#461 at the beginning of January? d. P3,203
a. P 144.50
b. P 153.00 68. Virginia Company applies overhead to jobs at the
c. P2,200.00 rate of 40 percent of direct labor cost. Direct
d. P2,456.50 material of P1,250 and direct labor of P1,400 were
expended on Job #145 during June. On May 31, the
65. During January, Alpha’s employees worked on Job balance of Job #145 was P2,800. The balance on
#649. At the end of the month, P714 of overhead June 30 is:
had been applied to this job. Total Work in Process a. P3,210
at the end of the month was P6,800 and all other b. P4,760
jobs had a total cost of P3,981. What amount of c. P5,450
direct material is included in Job #649? d. P6,010
a. P 677.00
b. P1,391.00 Jackson Company uses a job order costing system and
c. P2,142.00 the following information is available from its records.
d. P4,658.00 The company has three jobs in process: #6, #9, and #13.

Brown Corporation manufactures products on a job Raw material used P120,000

order basis. The job cost sheet for Job #656 shows the Direct labor per hour P8.50
following for March: Overhead applied based on direct labor cost 120%
Direct material P5,000
Direct material was requisitioned as follows for each job
Direct labor (100 hours @ P7.25) P725
respectively: 30 percent, 25 percent, and 25 percent;
Machine hours incurred 40
the balance of the requisitions was considered indirect.
Predetermined overhead rate per machine hour P26
Direct labor hours per job are 2,500; 3,100; and 4,200;
66. At the end of March, what total cost appears on the respectively. Indirect labor is P33,000. Other actual
job cost sheet for Job #656? overhead costs totaled P36,000.
a. P5,725
b. P5,765 69. What is the prime cost of Job #6?
c. P6,765 a. P42,250
d. P8,325 b. P57,250
 c. P73,250 labor cost for Jobs #325 and #401. The total cost of Jobs
d. P82,750 #323 and #325 is identical.

70. What is the total amount of overhead applied to Job 75. What amount of overhead is applied to Job #323?
#9? a. P4,800
a. P18,250 b. P5,550
b. P26,350 c. P6,300
c. P30,000 d. P7,500
d. P31,620
76. What amount of overhead is applied to Job #325?
71. What is the total amount of actual overhead? a. P8,325
a. P36,000 b. P7,500
b. P69,000 c. P7,000
c. P93,000 d. P5,000
d. P99,960
77. What is the amount of direct materials for Job
72. How much overhead is applied to Work in Process? #325?
a. P 69,000 a. P1,950
b. P 99,960 b. P1,500
c. P132,960 c. P3,700
d. P144,000 d. P7,500

73. If Job #13 is completed and transferred, what is the 78. Assume that Jobs #323 and #401 are incomplete at
balance in Work in Process Inventory at the end of the end of September. What is the balance in Work
the period if overhead is applied at the end of the in Process Inventory at that time?
period? a. P18,920
a. P 96,700 b. P22,620
b. P 99,020 c. P28,920
c. P139,540 d. P30,120
d. P170,720
Camden Company has two departments (Processing and
74. Assume the balance in Work in Process Inventory Packaging) and uses a job order costing system. Baker
was P18,500 on June 1 and P25,297 on June 30. The applies overhead in Processing based on machine hours
balance on June 30 represents one job that contains and on direct labor cost in Packaging. The following
direct material of P11,250. How many direct labor information is available for July:
hours have been worked on this job (rounded to the
nearest hour)? Processing Packaging
a. 751 Machine hours 2,500 1,000
b. 1,324 Direct labor cost P44,500 P23,000
c. 1,653 Applied overhead P55,000 P51,750
d. 2,976
79. What is the overhead application rate per machine
The following information pertains to Beta Company for hour for Processing?
September 2018. a. P 0.81
b. P 1.24
Direct Material Direct Labor Overhead c. P17.80
Job #323 P3,200 P4,500 ? d. P22.00
Job #325 ? 5,000 ?
Job #401 5,670 ? P5,550 80. What is the overhead application rate for
Packaging?
Beta Company applies overhead for Job #323 at 140 a. P 0.44
percent of direct labor cost and at 150 percent of direct b. P 2.25
 c. P23.00
d. P51.75 Overapplied overhead P 6,000
Cost of Goods Sold P980,000
Work in Process Inventory P 38,000
Finished Goods Inventory P 82,000
Tiger Company has a job order costing system and an 85. If the most common treatment of assigning
overhead application rate of 120 percent of direct labor overapplied overhead were used, the final balance
cost. Job #63 is charged with direct material of P12,000 in Cost of Goods Sold is:
and overhead of P7,200. Job #64 has direct material of a. P974,000
P2,000 and direct labor of P9,000. b. P974,660
c. P985,340
81. What amount of direct labor cost has been charged d. P986,000
to Job #63?
a. P 6,000 Pederson Company reported the following:
b. P 7,200 Manufacturing costs P2,000,000
c. P 8,640 Units manufactured 50,000
d. P14,400 Units sold 47,000 units sold for P75 per unit
Beginning inventory 0 units
82. What is the total cost of Job #64?
a. P10,800 86. What is the average manufacturing cost per unit?
b. P11,000 a. P40.00
c. P21,800 b. P42.55
d. P30,200 c. P0.025
d. P75.00
Bradley Company uses a job order costing system.
Assume that Job #504 is the only one in process. The 87. What is the amount of ending finished goods
following information is available: inventory?
a. P1,880,000
Budgeted direct labor hours 65,000 b. P120,000
Budgeted overhead P350,000 c. P225,000
Direct labor cost P70,000 d. P105,000
Budgeted machine hours 9,000
Direct material P110,500 88. What is the amount of gross margin?
a. P1,750,000
83. What is the overhead application rate if Bradley b. P3,525,000
uses a predetermined overhead application rate c. P5,405,000
based on direct labor hours (rounded to the nearest d. P1,645,000
whole dollar)?
a. P 0.20 The following information pertains to Alleigh’s
b. P 5.00 Mannequins:
c. P 5.38 Manufacturing costs P1,500,000
d. P38.89 Units manufactured 30,000
Units sold 29,500 units sold for P85 per unit
84. What is the total cost of Job #504 assuming that Beginning inventory 0 units
overhead is applied at the rate of 135% of direct
labor cost (rounded to the nearest whole dollar)? 89. What is the average manufacturing cost per unit?
a. P192,650 a. P50.00
b. P268,250 b. P50.85
c. P275,000 c. P17.65
d. P329,675 d. P85.00

At the end of the last fiscal year, Roberts Company had 90. What is the amount of ending finished goods
the following account balances: inventory?
 a. P42,500 Plant facility rent P 30,000
b. P25,424 Depreciation on plant machinery and equipment
c. P25,000 P 15,000
d. P1,475,000 Sales commissions P 20,000
Administrative expenses P 25,000
91. What is the amount of gross margin? 95. The actual amount of manufacturing overhead costs
a. P1,475,000 incurred in June 2018 totals:
b. P1,500,000 a. P278,500
c. P2,507,500 b. P100,000
d. P1,032,500 c. P55,000
d. P40,000
92. O'Reilly Enterprises manufactures digital video
equipment. For each unit P2,950 of direct material Roiann and Dennett Law Office employs 12 full-time
is used and there is P2,000 of direct manufacturing attorneys and 10 paraprofessionals. Direct and indirect
labor at P20 per hour. Manufacturing overhead is costs are applied on a professional labor-hour basis that
applied at P35 per direct manufacturing labor hour. includes both attorney and paraprofessional hours.
Calculate the cost of each unit. Following is information for 2018:
a. P4,950
b. P9,950 Budget Actual
c. P8,450 Indirect costs P270,000 P300,000
d. P11,950 Annual salary of each P100,000 P110,000
attorney
For 2018, Jake's Dog Supply Manufacturing uses Annual salary of each P 29,000 P 30,000
machine-hours as the only overhead cost-allocation paraprofessional
base. The accounting records contain the following Total professional labor- 50,000 60,000
information: hours

Estimated Actual 96. What are the actual direct-cost rate and the actual
Manufacturing overhead costs P200,000 P240,000 indirect-cost rate, respectively, per professional
Machine-hours 40,000 50,000 labor-hour?
a. P27.00; P4.17
93. Using job costing, the 2018 actual indirect-cost rate b. P29.80; P5.40
is: c. P32.40; P5.00
a. P4.00 per machine-hour d. P27.00; P5.00
b. P4.80 per machine-hour
c. P5.00 per machine-hour 97. How much should the client be billed in an actual
d. P6.00 per machine-hour costing system if 200 professional labor-hours are
used?
94. Using actual costing, the amount of manufacturing a. P5,000
overhead costs allocated to jobs during 2018 is: b. P6,960
a. P300,000 c. P7,480
b. P250,000 d. P6,400
c. P240,000
d. P200,000 For 2018, Jake's Dog Supply Manufacturing uses
machine-hours as the only overhead cost-allocation
Philadelphia Company manufactures pipes and applies base. The accounting records contain the following
manufacturing overhead costs to production at a information:
budgeted indirect-cost rate of P15 per direct labor-hour.
The following data are obtained from the accounting Estimated Actual
records for June 2018: Manufacturing overhead costs P200,000 P240,000
Direct materials P140,000 Machine-hours 40,000 50,000
Direct labor (3,500 hours @ P11/hour) P 38,500
Indirect labor P 10,000 98. Using job costing, the 2018 budgeted manufacturing
 overhead rate is:
a. P4.00 per machine-hour
b. P4.80 per machine-hour
c. P5.00 per machine-hour
d. P6.00 per machine-hour
99. Using normal costing, the amount of manufacturing
overhead costs allocated to jobs during 2018 is:
a. P300,000
b. P250,000
c. P240,000
d. P200,000

Rhett Company has two departments, Machining and

Assembly. The following estimates are for the coming
year:

Machining Assembly
Direct manufacturing labor-hours 10,000 50,000
Machine-hours 40,000 20,000
Manufacturing overhead P200,000 P400,000

100. A single indirect-cost rate based on direct

manufacturing labor-hours for the entire plant is:
a. P 8 per direct labor-hour
b. P10 per direct labor-hour
c. P20 per direct labor-hour
d. None of these answers is correct.

101. The budgeted indirect-cost driver rate for the

Machining Department based on the number of
machine-hours in that department is:
a. P5 per machine-hour
b. P10 per machine-hour
c. P20 per machine-hour
d. None of these answers is correct.