MANAGERIAL ACCOUNTING

FINAL EXAMINATION

1. Jane Company produces types of stereo units, Deluxe and Regular, for the most reent years, Jane reports the following data

Budgeted Overhead 180,000.00

Expected Activity (in direct labor hrs) 50,000.00
Actual Activity (in direct labor hrs) 51,000.00
ActualOverhead 200,000.00
Deluxe Regular
Units Produced 5000 50000
Prime Cost 40,000.00 30,000.00
DL hrs. 5,000.00 46,000.00

REQUIRED
1. Pre budgeted overhead based on expected Direct Labor hrs
Predetermined OH = Budgeted OH /Expected Activity (DL hrs)
= 180,000/50,000
= 3.6/DL hrs.

2. Calculate the unit cost of each stereo units

Deluxe Regular
Prime Cost 40,000.00 30,000.00
ActualOverhead 200,000.00 200,000.00
TOTAL COST 240,000.00 230,000.00
Units Produced 5000 50000
unit cost of each stereo 48.00 4.60

2. Eveane Manufacturing has the following standards for one of its products
SP
Direct Materials (2ft. @P5) P 10
Direct Labor (0.5hr @ P10) 5 5.00
During the most recent years, the following actual reults were recorded

Production in units 6000 AP

Direct Materials (11,750 ft purchased & used) P 61,100.00 5.20
Direct Labor (2,900 hrs) P 29,580.00

REQUIRED
1. Compute the materials price and usage variance.

Price = (AP-SP) xAQ

(5.20 - 5.00) x 11,750
Price = 2,350.00 U
 Usage = (AQ -SQ)xSP
(11,750 - 12000)x5
Usage = 1,250.00 F

2. Compute the Labor Rate & effeciency variance

Labor = (AH x SR)

(2,900 x 10) 29,000.00

(SH x SR)
(6,000 x 0.5)=3000 (3,000 x 10) 30,000.00
Effeciency variance 1,000.00 F
eports the following data.