PROBLEM 1
Likmuan, Inc., is a privately held furniture manufacturer. For August 2023,
Likmuan had the following standards for one of its products, a wicker chair:
Direct materials 2 square yards of input at P5 per square yard.
Direct manufacturing labor 0.5 hour of input at P10 per hour.
The following data were compiled regarding actual performance: actual output
units (chairs) produced, 2,000; square yards of input purchased and used, 3,700;
price per square yard, P5.10; direct manufacturing labor costs, P8,820; actual
hours of input, 900; labor price per hour, P9.80.
REQUIRED:
1. MATERIALS PRICE VARIANCE
2. MATERIALS QUANTITY VARIANCE
3. LABOR RATE VARIANCE
4. LABOR EFFICIENCY VARIANCE
PROBLEM 3:
Actual quantity of direct materials purchased 35,000 pounds
Standard price of direct materials P 4 per pound
Material price variance P 7,000 UF
Material quantity variance P 4,200 F
REQUIRED:
The actual price per pound of direct materials purchased?
PROBLEM 5
Actual total overhead P178,500
Budget Formula P110,000 plus P0.50 per hour
Total Overhead Application rate P1.50 per hour
Spending Variance (from 3-way)P8,000 UF
Volume variance (from 2-way) P5,000 F
Overall factory overhead variancP6,000 UF
REQUIRED:
1. Actual hours work
2. Standard hours.
COMPREHENSIVE PROBLEM:
Villaverde Corporation’s standard cost system contains the following
overhead costs, computed based on monthly normal volume of 25,0000
units or 50,000 direct labor hours:
Variable factory overhead 12 per unit
Fixed Factory Overhead 8 per unit
The following information pertains to the month of April 2020:
Actual FOH cost incurred:
Variable 316,680
Fixed 225,000
Actual Production 26,000 units
Actual DL hours worked 54,600 hours
REQUIRED: All FOH Variance
total FOH cost variance is:
variable overhead variance
variable overhead spending variance
variable efficiency variance
fixed overhead variance
fixed spending variance
capacity variance
controllable variance
spending variance
PROBLEM 2
Jamero Company's budgeted fixed overhead cost is P50,000 per month
plus a variable factory overhead rate of P4 per direct labor hour. The
standard direct labor hours allowed for October production was 18,000.
An analysis of the factory overhead indicates that in October, Jamero
had an unfavorable budget (controllable) variance of P1,000 and
a favorable volume variance of P500.
REQUIRED:
1. The actual factory overhead measured in October is?
2. The applied factory overhead in October is?
PROBLEM 4
Lelis Company produces a perfume called "pen perfume". The direct materials and direct labor standards for
one bottle of "pen perfume" are given below:
Standard Quantity Standard Rate Standard Cost
Direct Materials 7.2 ounce P2.5 per ounce P 18
Direct Labor 0.4 hours 10.00 per hour P4
During the recent month, the following activity was recorded:
*20,000 ounces of materials were purchased at a cost of P2.40 per ounce.
*All of the materials was used to produce 2,500 bottles of "pen perfume".
*Nine hundred hours of direct labor time were recorded at a total labor cost of P10,800.
REQUIRED:
1.Materials Price variance
2. Materials Quantity Variance
3. Labor Rate Variance
4. Labor Efficiency Variance
PROBLEM 6
Simon Enterprises applies variable overhead at a rate of P1.50
per direct labor hour and fixed overhead at a rate of P1.75 per
direct labor hour. The company budgets two direct labor hours for
each of the 6,000 units that are scheduled for production. Simon
incurred actual variable overhead totalling P18,700 and actual fixed
overhead totalling P21,500 last year for the production of 5,900 units.
In addition, 11,800 direct labor hours were actually incurred.
REQUIRED:
1. Variable OH efficiency variance.
2. Variable OH spending variance.
3. Fixed OH volume variance.
4. Fixed OH spending variance.
abor standards for
