Problem 1 Problem 2

Cabrera. The Finishing Department of Focus, Inc. uses a standard cost system and a Agamata. In analyzing the factory overhead variances, the following relevant data
flexible budget. were taken from the original information:
Normal capacity 135,000 units or 405,000 hours
Denominator activities are as follows: Standard hours 390,000 hours
Machine hours 140 Actual hours 380,000 hours
Finished pieces produced 2,800 Standard overhead rates:
Fixed P3.00 per hour
The standard costs in connection with this production are: Variable 2.00 per hour
Direct materials at P1.20 P3,360 Total P5.00 per hour
Direct labor at P0.1125b 315 Actual:
Factory overhead* 1,400 Variable P800,000
Total P5,075 Fixed 1,250,000
*Includes an allowance for variable overhead at a rate of P0.30 per piece.
Analyze the factory overhead variances using the:
The actual production for the month was: 1. Two-way analysis
Machine hours 130 2. Three-way analysis
Finished pieces produced 2,860 3. Four-way analysis
4. Five-way analysis
The actual cost for this production was:
Direct materials P3,575 Problem 3
Direct labor 286 Cabrera. The following events took place at Construct Co., during the month of
Factory overhead* 1,573 September 2018:
Total P5,434
*Includes P573 of fixed overhead. 1. Produces and sold 50,000 units at a sales price of P10 each. The budgeted
sales were 45,000 units at P10.15 each.
Required:
1. Determine the standard cost per finished product. 2. Standard variable cost per units is as follows:
2. Compute the materials variances. Direct materials (2 lbs. at P1.00) P2.00
3. Compute the direct labor variance. Direct labor (0.10 hours at P15) 1.50
4. Analyze factory overhead variance using: Variable manufacturing overhead (0.10 hours at P5) 0.05
a. Two-variance method. Total cost per unit P4.00
b. Three-variance method.
c. Four-variance method. 3. Fixed manufacturing overhead cost per month is P80,000.

4. Actual production cost includes the following:

Direct materials purchased: 200,000 lbs. at P1.20 P240,0000
Direct materials used: 110,000 lbs. at P1.20 132,000
 Direct labor: 6,000 hours at P14 28,000 Labor 0.06
Fixed overhead 83,000 Factory overhead 0.10
P0.46
Compute the following variances:
1. Direct materials variances Analyze variances in materials, direct labor and factory overhead.
2. Direct labor variances
3. Variable manufacturing overhead variances Problem 5
4. Fixed manufacturing overhead variances Cabrera. The following raw material quantities and prices at standard are estimated to
produce 2,000 of finished product:
Problem 4 Material A 1,500 pounds at P0.300 P450
Cabrera. The Bubble Gang Company that manufactures chewing gum uses a standard Material B 500 pounds at 0.200 100
cost system. Standard product and cost specifications for 1,000 lbs. of chewing gum Material C 400 pounds at 0.425 170
are as follows: 2,400 P720
Quantity Price Cost Actual quantities of raw materials used (10,000 finished goods):
Gum base 800 lbs. P0.25/lb. P200.00 Material A 8,000 pounds at P0.320 P2,560
Corn syrup 200 lbs. 0.40/lb. 80.00 Material B 2,400 pounds at 0.180 432
Sugar 200 lbs. 0.10/lb. 20.00 Material C 2,800 pounds at 0.450 1,260
Input 1,200 lbs. P300.00 13,200 P4,252

Output 1,000 lbs. P300 Compute the material mix and yield variances.

Materials records indicate: Problem 6

Beg. Inventory Purchases End. inventory Agamata. Mindoro Company manufactures a simple product with the following
Gum base 10,000 lbs. 162,000 lbs. at P0.24 15,000 lbs. standard variable cost per unit:
Corn syrup 12,000 lbs. 30,000 lbs. at P0.42 4,000 lbs. Direct materials (10 lbs. at P0.50 per lb.) P5
Sugar 15,000 lbs. 32,000 lbs. at P0.11 11,000 lbs. Direct manufacturing labor (2 hrs. at P10 per hr.) 20
Variable manufacturing overhead (3 machine hrs. at P5 per hr.) 15
To convert 1,200 lbs. of raw materials into 1,000 lbs. of finished product requires 20 Total variable cost per unit P40
hours at P3 per hour or P0.06 per lb. Actual direct labor hours and cost for the same
period are 3,800 hours at P11,552. Fixed manufacturing cost are budgeted to be P400,000. Selected actual results and
variances are:
Factory overhead is applied on a direct labor hour basis at a rate of P5 per hour (P3 Production output 100,000 units
fixed and P2 variable) or P0.10 per lb. Normal overhead is P20,000 with P4,000 direct Direct materials beginning 0
labor hours. Actual overhead for the month is P22,000. Actual finished production for Direct materials ending 100,000 lbs.
the month is 200,000 lbs. Materials price variance P24,000 U
Materials efficiency variance 50,000 U
The standard cost per pound of finished chewing gum is: Direct labor price variance 50,000 F
Materials P0.30
Direct labor efficiency variance P100,000 U
Variable overhead spending variance 50,000 F
Variable overhead efficiency variance 150,000 U
Fixed overhead spending variance 30,000 U
Volume variance 0

Compute the following items:

1. Direct materials purchased in pesos.
2. Direct materials purchased in pounds.
3. Average price paid per pound of direct materials.
4. Direct materials used in pesos.
5. Direct materials used in pounds.
6. Direct labor used in pesos.
7. Direct labor hours used.
8. Average rate paid per direct labor hours.
9. Actual variable overhead in pesos.
10. Machine hours used.
11. Average variable overhead rate per machine hour.
12. Actual fixed overhead in pesos.
13. Planned level of production in units.
14. Planned level of production in machine hours.