Question 1

2 / 4 pts
China Resources Corporation's standard cost sheet is as follows:

Direct material 4 kilos at P5.00 per kilo

Direct labor 3 hours at P10.00 per hour

Variable overhead 3 hours at P2.00 per hour

Fixed overhead 3 hours at P1.00 per hour

Additional information:
Actual results: purchased 30,000 kilos of material at P5.25 per kilo (there were no
beginning or ending material inventories); direct labor cost incurred was 26,000 hours at
P9.75 per hour; actual variable overhead incurred, P50,000; actual fixed overhead
incurred P43,000.
Overhead is applied to work-in-process on the basis of direct labor hours.
The company produced 8,000 units of product during the period.
The number of estimated hours for computing the fixed overhead application rate
totaled 45,000 hours.

1. The material price and efficiency variances are: 

A) P7,500 F; P10,000 F D) P6,200 F; P8,000 U

B) P7,500 U; P10,000 F E) None of the above

C) P6,200 F; P8,000 U

2. The labor price and efficiency variances are: 

A) P6,500 F; P20,000 U D) P7,200 F; P8,400 U

B) P6,500 U; P20,000 U  E) None of the above

3. The variable overhead price and efficiency variances are: 

A) P5,600 F; P4,200 U D) P2,000 U; P4,000 F

B) P5,600 U; P4,200 F E) None of the above

C) P2,000 F; P4,000 U

C
 
4. The fixed overhead price and production volume variances are: 

A) P2,000 F; P23,000 U D) P4,000 F; P25,000 U

B) P2,000 U; P23,000 F E) None of the above

C) P4,000 F; P25,000 F

Answer 1:
Correct!B
Answer 2:
Correct!A
Answer 3:
You AnsweredD
Correct Answer
C
 
Answer 4:
You AnsweredC
Correct Answer
E
 
 
Question 2
0 / 1 pts
Material mix variance is indicative of
   
having used a higher or lower share of material times total actual usage times actual
rates
 
You Answered
  
total actual usage minus standard usage times standard share of material times
standard rates.
 

  
total actual usage minus standard usage times standard share of material times actual
rates
 
Correct Answer
  
having used a higher or lower share of materials times total actual usage times standard
rates
 

  
having used a higher or lower share of materials times total standard usage times actual
rates
 
 
Question 3
1 / 1 pts

The flexible budget for the month of May 2022 was for 9,000 units with direct materials of
P15 per unit. Driect labor was budgeted at 45 minutes per unit for a total of P81,000. Actual
output for the month was 8,500 units with P127,500 in direct materials and P77,775 in direct
labor expense. The direct labor standard of P45 minutes was maintained throughout the
month. Variance analysis of the performance for the month of May would show a (an):

  
P7,500 unfavorable material usage variance
 
Correct!
  
P1,275 unfavorable direct labor price variance
 
   
P1,275 favorable direct labor efficiency variance
 

  
P1,275 unfavorable direct labor efficiency variance
 

  
P7,500 favorable materials usage variance