The document contains 13 computation questions related to standard costing and variances. It provides various data on direct material and direct labor costs, including standard costs, actual costs, quantities, purchase prices, production amounts, variances, and labor rates. The questions require calculations to be performed using the data in order to determine missing values like actual purchase prices, variances, costs, and standard rates.
The document contains 13 computation questions related to standard costing and variances. It provides various data on direct material and direct labor costs, including standard costs, actual costs, quantities, purchase prices, production amounts, variances, and labor rates. The questions require calculations to be performed using the data in order to determine missing values like actual purchase prices, variances, costs, and standard rates.
The document contains 13 computation questions related to standard costing and variances. It provides various data on direct material and direct labor costs, including standard costs, actual costs, quantities, purchase prices, production amounts, variances, and labor rates. The questions require calculations to be performed using the data in order to determine missing values like actual purchase prices, variances, costs, and standard rates.
The document contains 13 computation questions related to standard costing and variances. It provides various data on direct material and direct labor costs, including standard costs, actual costs, quantities, purchase prices, production amounts, variances, and labor rates. The questions require calculations to be performed using the data in order to determine missing values like actual purchase prices, variances, costs, and standard rates.
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CHAPTER 15- Computation
1. Information about York Company direct material costs is as follows:
Standard unit price P 3.60
Actual quantity purchased 1600 Standard quantity allowed for actual production 1450 Materials purchase price variance – unfavorable P 240
What was the actual purchase price per unit, rounded to the nearest centavos?
a. P3.06 b. P3.75 c. P3.11 d. P3.45
2. Data for Sunday Company’s direct materials costs for June is as follows:
Actual quantity of direct materials purchased 30,000 units
Actual costs of direct materials P84,000 Unfavorable direct materials quantity variance P3,000 Standard quantity of direct materials allowed for June production 29,000
For the month of June, Sunday’s direct materials price variance was
a. P2,800 unfavorable b. P2,800 favorable c. P6,000 favorable d. P6,000 unfavorable
3. Monday, Inc., uses a standard cost system to account for its only product. The materials standard per unit was 4 kilos at P5.10 per kilo. Production data for April were as follows:
Materials used 7,800 kilos
Costs of materials used P40,950 Number of finished units purchased 2,000
What is the materials quantity variance for April?
a. P1,020 favorable b. P1,050 favorable c. P1,170 unfavorable d. P1,020 unfavorable
4. Lolo, Inc., uses a standard costing system in manufacturing a certain shirt. Each unit of finished product contains 2 meters of direct materials. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The cost of direct material is P30 per meter. The standard direct material cost per unit of finished product is:
a. P48.50 b. P60.00 c. P72.50 d. P75.00
5. Information about Monday Company’s direct material cost for the month of June 2014 was as follows:
Actual quantity purchased 18,000
Actual unit purchase price P3.60 Materials price variance - unfavorable P3,600 Standard quantity of allowed for actual production 16,000 Actual quantity used 15,000
For June 2014, what is the direct materials quantity variance?
a. P3,400 favorable b. P3,400 unfavorable c. P3,600 favorable d. P3,600 unfavorable
6. Tuesday, Inc., which uses standard cost system, had 5,000 units of raw material X in its inventory on June 1, 2008. These materials was purchased in May for P12.00 per unit and carried at a standard cost of P10.00. The following information pertains to raw material X for the month of June 2014:
Actual number of units purchased 14,000
Actual number of units used 15,000 Standard quantity of allowed for actual production 13,000 Standard price per unit P10.00 Actual price per unit P11.00
The materials purchase price variance for Raw Material X for June was: a. P14,000 favorable b. P14,000 unfavorable c. P15,000 favorable d. P15,000 unfavorable
7. Data about direct labor of Friday Company is given below:
Standard direct labor hours 30,000
Actual direct labor hours 29,000 Direct labor efficiency variance - favorable P4,000 Direct labor rate variance - favorable P5,800 Total payroll P110,200
What was Friday’s actual and standard direct labor rate?
Actual Direct Labor Rate Standard Direct Labor Rate
a. P2.60 P3.54 b. P3.80 P4.00 c. P4.00 P3.80 d. P5.80 P3.80
8. Information on Tan Company’s direct labor costs is as follows:
Standard direct labor rate P3.75
Actual direct labor rate P3.50 Standard direct labor hours 10,000 Direct labor efficiency variance - unfavorable P4,200
What were the actual hours worked, rounded to the nearest hour?
a. 11,914 b. 10,714 c. 11,120 d. 11,200
9. Each unit of Product O requires two direct labor hours. Employee benefits benefit costs are treated as direct labor costs. Data on direct labor are as follows:
Number of direct employees 25
Weekly productive hours per employee 30 Estimated weekly wages per employee P240 Employee benefits 25% The standard direct labor cost per unit of Product O is:
a. P20 b. P10 c. P12 d. P22
10. The direct labor standards for producing a unit of a product are two hours at P10 per hour. Budgeted production was 1,000 units. Actual production was 900 units direct labor cost was P10,000 for 2,000 direct labor hours. The direct labor efficiency variance was:
a. P1,000 favorable b. P2,000 unfavorable c. P1,000 unfavorable d. P2,000 favorable
11. The following direct labor information pertains to the manufacture of Product S:
Time required to make one unit 2 direct labor hours
Number of direct workers 50 Number of productive hours per week, per workers 40 Weekly wages per worker P500 Workers’ benefit treated as direct labor costs 20% of wages
What is the standard direct labor cost per unit of Product S?
a. P30 b. P24 c. P15 d. P12
12. The following information pertains to Gold Company’s direct labor for June 2014:
Standard direct labor hours 21,000
Actual direct labor hours 20,000 Favorable direct labor rate variance P8,400 Standard direct labor per hour P6.30
What was Gold Company’s total actual direct labor cost for June 2014?
a. P117,600 b. P134,000 c. P134,400 d. P118,000
13. Silver Company presents the following information for the month May 2014:
Units produced 6,250
Wages paid for 10,400 hours P33,680 Materials costs for 3,850 kilos P17,059 Variances: Labor rate - unfavorable P1,720 Labor efficiency - favorable P525 Material price - favorable P1,400 Material usage - unfavorable P890
