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07 469 EXERCISE 11-17 1. The departmental rates in Onyok Manufacturing Co. are as follows: Dept. A- P5.00 per labor hour 20% of direct labor
07
469 EXERCISE 11-17 1. The departmental rates in Onyok Manufacturing Co. are as follows: Dept. A- P5.00 per labor hour 20% of direct labor cost P8.00 based on 20,000 machine hours B- C- (Dept. B), and 20,000 machine hours (Dept. C). Normal capacities are 30,000 labor hours (Dept. A), P400,000 direct labor cost An analysis of the estimated expenses of each producing department shows. Dept. A Dept. B Fixed expenses........ ..P30,000......P25,000......P20,000 Charged by service departments....... 45,000....... 30,000....... 60,000 Dept.C What must be the variable overhead rate in cach of the three(3) producing departments? Dept. A Dept. B Dept. C Per labor hour Per Pl of labor cost Per machine hour P4.00 P13.75 P7.00 P4.00 13.75% P7,00 P1.50 7.50% P3.00 None of the above; answer is a. b. C. d. and 2. Using the same data in no. 1 above, and assume that actual capacity and actual factory overhead per producing departments (after distribution of service department expenses) were as follows: Actual Factory Overhead Dept. A- 32,000 labor hours......... ..P152,000 B- P388,000 direct labor cost... 95,000 C- 21,500 machine hours....... 168,000 How much is the under-applied (over-applied) factory overhead variance in each department? Dept. A a. P 8,000 b. P(8,000) C. P 5,400 d. None of the above; answer is Dept. B P(17,400) P 17,400 PC 8,000) Dept.C P 4,000 P(4,000) P17,400 and 170 sing the same data in t). I how much must be the total production cost of Job No. 35 on which the following data are piven Dept. B Dept. C 27.500 P2.900 145 70 a. P34,370 Dept. A Direct material cost .P9,000 P8,000 Direct labor cost............ ..P2,500 P2.800 Direct labor hours..... 110 130 Machine hours... 10 20 b. P32,700 c. P37,065 d. None of these, answer is 1. PILAR Manufacturing Co. has three(3) producing departments (P, 1& L), and uvol2) service departments (A & R). The total estimated departmental expenses for 2018 before distribution of service department expenses; the bases for departmental rates and distribution of service expenses are also included: Dept.P. ..P90,000 Machine hours I..... 120,000 Direct labor hours L.... 80,000 Direct labor cost A... 28,000 Space provided R..... 36,000 No. of employees The factory survey made at the beginning of 2018 shows: Dept. Floor Area No. of Estimated Estimated Estimated (sg. m.) Employees DL hours Mach.hours DL cost 300 27 40,000 30,000 P650.000 300 30 50,000 15.000 900.000 200 23 30,000 10,000 500,000 100 100 P 1 L A R 6 5 What should be the departmental overhead rates assuming that service department expenses were distributed also to other service departments? Dept. P(Per MI) Dept. (Per DLH) Dept. L.% of DL Cost) P3.76 P2.88 b. P2.88 P3.76 P0.20 c. P4.00 P3.00 20% d. None of the above; answer is a. 19% 5. How much should be the total expenses of Dept. A and Runder the algebraic merhati a. P34,400 and P38,400, respectively. b. P30,750 and P39,417, respectively. c. P30,782 and P39,420, respectively. d. None of the above; answer is andStep by Step Solution
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