Acctg 216

ACCTG 216

COST ACCOUNTING AND COST MANAGEMENT

FINAL EXAMINATION

MULTIPLE CHOICE:

Choose the letter of the correct answer and provide relevant solutions. NO SOLUTION, NO POINT

1. During March, Younger Company’s direct material costs for the manufacture of product T were as follows:

Actual unit purchase price P6.50

Standard quantity allowed for actual production 2,100

Quantity purchased and used for actual production 2,300

Standard unit price P6.25

Younger’s material usage variance for March is:

a. P1,250 unfavorable

b. P1,250 favorable

c. P1,300 unfavorable

d. P1,300 favorable

2.

3. Information on Rex Co.’s material costs for May is as follows:

Actual quantity of direct materials purchased and used 30,000lbs.

Actual cost of direct materials P84,000

Unfavorable direct materials usage variance 3,000

Standard quantity of direct materials allowed for May production 29,000lbs.

For the month of May, what was Rex’s direct materials price variance?

a. P2,800 favorable

b. P2,800 unfavorable

c. P6,000 unfavorable

d. P6,000 favorable

4.

5. The direct labor standards for producing a unit of a product are two hours at P10 per hour. Budgeted production was 1,000 units. Actual production was 900 units and direct labor cost was P19,000 for 2,000 direct labor hours. The direct labor efficiency variance was:

a. P1,000 favorable

b. P1,000 unfavorable

c. P2,000 favorable

d. P2,000 unfavorable

6.

7. Information on Barber Company’s direct labor costs for the month of January is as follows:

Actual direct labor hours 34,500

Standard direct labor hours 35,000

Total direct labor payroll P241,500

Direct labor efficiency variance – favorable P3,200...