Accounting

QUIZZER

Problem 1: Order Up, Inc., provides order fulfillment services for e-commerce merchants. The company maintains warehouses that stock items carried by its clients. In the most recent month, 140,000 items were shipped to customers using 5,800 direct labor-hours. The company incurred a total of P15,950 to fulfill an order for one item. For the year, Order Up expects to incur 60,000 direct labor hours and P168,000 of variable overhead costs.

Compute the variable spending variance.

Problem 2: The actual direct labor wage rate is P8.50 and 4,500 direct labor-hours were actually worked during the month. The standard direct labor wage is P8 and the standard quantity of hours allowed for the actual level of output was 5,000 direct labor-hours. The standard variable overhead per direct labor-hour is P5.

What is the variable overhead efficiency variance if the variable manufacturing overhead costs was P24,750?

Problem 3: Edney Company employs standard absorption system for product costing. The standard cost of its product is as follows:

Raw materials P14.50

Direct labor (2 DLH x P8) P16.00

Manufacturing overhead (2 DLH x P11) P22.00

The manufacturing overhead rate is based upon a normal activity level of 600,000 direct labor hours. Edney planned to produce 25,000 units each month during the year. The budgeted amount manufacturing overhead is

Variable P3,600,000

Fixed 3,000,000

During November, Edney produced 26,000 units. Edney used 53,500 direct labor hours in November at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during November was P572,000.

The variable manufacturing overhead spending variances for November is:

Problem 4: The following data pertain to Turk Company’s operations last year:

Sales | P900,000 |

Net operating income | P36,000 |

Contribution Margin | P150,000 |

Average operating...