11 - 21 To produce 1,000 units of the product, the standard prime costs are as follows : Direct labor Direct materials Materials Kilos 500 A 350 400 1,250 Per kilo Amount Type Hours Per hour P.10 20 30 P 50 70 120 240 30 20 50 100 P 5 3 2 Amount P 150 60 100 310 Y Factory overhead has been estimated at the normal capacity of 1,200 hours as follows : Variable P 2,400 In producing 10,000 units of the product, the company incurred factory overhead of Eixed P 1,200 P 3.320 and the prime costs of, Direct Materials Kilos 6,000 2,000 3.000 11,000 Direct labor Type Hours Per hour 275 Materials Per Kilo Amount P 540 440 990 P 1,970 Amount P1,402.50 650.70 P.09 P 5.10 22 .33 Y 241 2.70 1.95 594 1,110 1,158.30 P3,211.50 11. Material Mix Variance is а. Р 70 b. P (212) c. P( 430) d. P (288) 12. Material Yield Variance is а. Р 70 b. P (212) c. P( 430) d. P (288) 13. Material Price variance is а. Р 70 b. P (212) c. P( 430) d. P (288) 14. Labor rate Variance is а. Р (155) b. P (74.50) с. Р 217 d. P 372 15 Labor Efficiency Variance is a. P 186 b. P (74.50) c. P 217 d. P (155) 16. Labor Mix Variance is а. Р 186 b. P (74.50) с. Р 341 d. P (155) 17. Labor Yield variance is а. Р 372 b. P (74.50) с. Р 341 d. P (155) 18. Factory Overhead Controllable variance is a. P 360 b. P 690 c. P (100) d. P 90 19. Factory Overhead Volume Variance is а. Р 360 b. P 690 с. Р (100) d. P 90 20. Factory Overhead Efficiency Variance is а. Р 360 b. P 690 с. Р (100) d. P 90 21. Factory Overhead Yield Variance is а. Р 360 b. P 690 с. Р (100) d. P 90 ABC
11 - 21 To produce 1,000 units of the product, the standard prime costs are as follows : Direct labor Direct materials Materials Kilos 500 A 350 400 1,250 Per kilo Amount Type Hours Per hour P.10 20 30 P 50 70 120 240 30 20 50 100 P 5 3 2 Amount P 150 60 100 310 Y Factory overhead has been estimated at the normal capacity of 1,200 hours as follows : Variable P 2,400 In producing 10,000 units of the product, the company incurred factory overhead of Eixed P 1,200 P 3.320 and the prime costs of, Direct Materials Kilos 6,000 2,000 3.000 11,000 Direct labor Type Hours Per hour 275 Materials Per Kilo Amount P 540 440 990 P 1,970 Amount P1,402.50 650.70 P.09 P 5.10 22 .33 Y 241 2.70 1.95 594 1,110 1,158.30 P3,211.50 11. Material Mix Variance is а. Р 70 b. P (212) c. P( 430) d. P (288) 12. Material Yield Variance is а. Р 70 b. P (212) c. P( 430) d. P (288) 13. Material Price variance is а. Р 70 b. P (212) c. P( 430) d. P (288) 14. Labor rate Variance is а. Р (155) b. P (74.50) с. Р 217 d. P 372 15 Labor Efficiency Variance is a. P 186 b. P (74.50) c. P 217 d. P (155) 16. Labor Mix Variance is а. Р 186 b. P (74.50) с. Р 341 d. P (155) 17. Labor Yield variance is а. Р 372 b. P (74.50) с. Р 341 d. P (155) 18. Factory Overhead Controllable variance is a. P 360 b. P 690 c. P (100) d. P 90 19. Factory Overhead Volume Variance is а. Р 360 b. P 690 с. Р (100) d. P 90 20. Factory Overhead Efficiency Variance is а. Р 360 b. P 690 с. Р (100) d. P 90 21. Factory Overhead Yield Variance is а. Р 360 b. P 690 с. Р (100) d. P 90 ABC
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
Section: Chapter Questions
Problem 20.22EX: Variable costing income statement and contribution margin analysis for a service company The actual...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:11 21 To produce 1,000 units of the product, the standard prime costs are as follows :
Direct materials
Materials Kilos
500
Direct labor
Per kilo Amount Type Hours Per hour
P 5
Amount
P 150
A
P.10
P. 50
30
20
.30
B
350
400
70
120
Y
20
50
3
2
60
100
310
1,250
240
100
Factory overhead has been estimated at the normal capacity of 1,200 hours as follows :
Eixed P 1,200
In producing 10,000 units of the product the company incurred factory overhead of
Variable P 2,400
P3.320 and the prime costs of;
Direct Materials
Direct labor
Type Hours Per hour
P 5.10
2.70
1.95
Materials
Amount
P 1,402.50
650.70
1,158.30
P 3,211.50
Kilos
Per Kilo
Amount
A
540
6,000
2,000
3,000
11,000
P.09
275
B
22
440
Y
241
33
990
P 1,970
594
1,110
11. Material Mix Variance is
а. Р 70
b. P (212)
c. P( 430)
d. P (288)
12. Material Yield Variance is
а. Р 70
b. P (212)
c. P( 430)
d. P (288)
13. Material Price variance is
а. Р 70
b. P (212)
с. Р. 430)
d. P (288)
14. Labor rate Variance is
а. Р(155)
b. P (74.50)
c. P 217
d. P 372
15 Labor Efficiency Variance is
а. Р 186
b. P (74.50)
C. P 217
d. P (155)
16. Labor Mix Variance is
а. Р 186
b. P (74.50)
С. Р 341
d. P (155)
17. Labor Yield variance is
а. Р372
b. P (74.50)
с. Р 341
d. P (155)
18. Factory Overhead Controllable variance is
а. Р 360
b. P 690
с. Р (100)
d. P 90
19. Factory Overhead Volume Variance is
а. Р 360
b. P 690
с. Р (100)
d. P 90
20. Factory Overhead Efficiency Variance is
а. Р 360
b. P 690
с. Р (100)
d. P 90
21. Factory Overhead Yield Variance is
а. Р 360
b. P 690
с. Р (100)
d. P 90
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