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M 209
M 209
M 209
The
controller has decided that utilities are a function of the hours worked during the
utility costs:
If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar)
a. P947.
b. P954.
c. P959.
d. P976.
direct labor hour. During the year it incurred P345, 000 of actual overhead, but it
planned to incur P360, 000 of overhead. The company applied P363, 000 of overhead
during the year. How many direct labor hours did the company plan to incur?
a. 1,150,000
b. 1,190,000
c. 1,200,000
d. 1,210,000
3. Birmingham Machine Works had the following data regarding monthly power costs:
1
Sept. 200 640
Assume that management expects 500 machine hours in October. Using the high-low
method, calculate October’s power cost using machine hours as the basis for
prediction.
a. P700
b. P705
c. P710
d. P1,320
company's expected annual fixed overhead is P340, 000 and its variable overhead
cost per machine hour is P2. The company's relevant range is from 200,000 to
600,000 machine hours. Walton expects to operate at 425,000 machine hours for the
coming year. The plant's theoretical capacity is 850,000. The predetermined overhead
a. P2.40.
e. P2.57.
f. P2.80.
g. P2.85.
5. Nickel Corp. is preparing a flexible budget for 20-2 and the following maximum
Capacity
would be the total factory overhead rate, based on direct labor hours, in a
2
flexible budget at normal capacity?
could increase the unit selling price by 10% and increase the unit sales volume
these changes in its 209 forecast. What would be the operating income?
MULTIPLY 0.2
40
TOTAL 640
0.2
DIVIDE 425000
3
0.8
DIVIDE 80000
75%
DIVIDE 60000
DIVIDE 150000
VARIABLE RATE 8
MULTIPLY 110%
MULTIPLY 120%
ADD 200000
VARIABLE RATE -8
4
8.5
MULTIPLY 180000
480000