Quiz Cost

1-3. Different management levels in Cates, Inc.
, require varying degrees of managerial

accounting information. Because of the need to comply with the managers' requests,
four different variances for manufacturing overhead are computed each month. The
information for the September overhead expenditures is as follows:
Budgeted output units 3,200 units
Budgeted fixed manufacturing overhead P20,000
Budgeted variable manufacturing overhead P5 per direct labor hour
Budgeted direct manufacturing labor hours 2 hours per unit
Fixed manufacturing costs incurred P26,000
Direct manufacturing labor hours used 7,200
Variable manufacturing costs incurred P35,600
Actual units manufactured 3,400
Required:
1)Compute a 4-variance analysis for the plant controller
2) Compute a 3-variance analysis for the plant manager.
3) Compute a 2-variance analysis for the corporate controller.
4) Fred Company uses a standard cost system for its production process and applies
overhead based on direct labor hours. The following information is available for August
when Fred made 4,500 units:
Standard:
DLH per unit 2.50
Variable overhead per DLH P1.75
Fixed overhead per DLH P3.10
Budgeted variable overhead P21,875
Budgeted fixed overhead P38,750
Actual:
Direct labor hours 10,000 hrs
Variable overhead P26,250
Fixed overhead 38,000
Requirement: Compute for 2 way methods.
5-7. Company XYZ produces a product that has the following factory overhead standard
costs per unit. The budgeted production is at the normal capacity of 1,000 units,
requiring a budgeted time of 3,000 hours. The total fixed factory overhead at this
capacity is $30,000.
Variable FOH 3 hours at $30 per hour
Fixed FOH 3 hours at $10 per hour
During the month, the company produced 1,100 units and incurred the following actual
factory overhead costs:
Variable FOH (3,250 hours at $29 per hour) $ 94,250
Fixed Factory overhead $ 36,500
Total $ 130,750
Required:
5. Compute for the Budget Variance.
A. 3000 F
B. 2300 F
C. 1750 UF
D. 2400 UF
6. Calculate for the Volume Variance
A. 3000 F
B. 2000 F
C. 1750 UF
D. 2450 UF
7. Compute for the total Factory Overhead Variance
A. 1200 F
B. 1250 F
C. 1650 UF
D. 2000 UF
8-11. You are an accounting analyst at GGG Consulting, a company that provides
management consulting services. You are asked to perform a cost variance report for
the month of January. Below is some key information.
Data Budgeted Actual

Labor Hours 500 700
Labor Cost ($) 250,000 280,000
$5 per labor
Pre-determined Variable overhead rate
hour
Variable overhead cost ($) 5,600
Since the consulting firm does not have any materials to manage, it really focuses its
variance analysis on direct labor as well as its variable overhead.
Required:
8. Compute the direct labor spending variance.
9. Compute the direct labor price variance.
10. Compute the direct labor efficiency variance.
11. Compute the variable overhead spending variance.
12. The ABC Manufacturing Company has the following data for the month of June
2022:
• Actual variable manufacturing overhead: ₱ 80,000
• Actual hours worked during June: 6,000 hours
• Standard variable manufacturing overhead rate: ₱ 10 per hour
Required: Using the above information, compute variable spending variance of ABC
Manufacturing Company for the month of June.
13. The production manager of Hodgson Industrial Design estimates that the fixed
overhead should be ₱ 700,000 during the upcoming year. However, since a production
manager left the company and was not replaced for several months, actual expenses
were lower than expected, at ₱ 670,000.
Required: Using the above information, compute fixed overhead spending variance.
14. The following information is extracted from the Indiana Company for the month of
April.
• Variable budgeted manufacturing overhead: ₱ 352,000
• Estimated or budgeted hours allowed for production: 11,000 hours
• Standard manufacturing overhead rate: ₱ 32 (₱ 352,000/11,000 hours)
• Standard time estimated per unit: 3 hours
• Actual hours worked during the period: 10,500 hours
• Number of actual units produced: 5,500 units
Required: Calculate the variable overhead efficiency variance for Indiana Company for
the month of April.
15. A company budgets for the allocation of ₱ 30,000 of fixed overhead cost to
produced goods at the rate of ₱ 50 per unit produced, with the expectation that 600
units will be produced. However, the actual number of units produced is 500, so a total
of ₱ 25,000 of fixed overhead costs are allocated.
Required: Compute the fixed overhead volume variance.

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1-3. Different management levels in Cates, Inc.

, require varying degrees of managerial

Requirement: Compute for 2 way methods.

Data Budgeted Actual

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