Question
1. Cart Titan Co. produced 3,200 units of product. Each unit requires 2 standard hours. The standard labor rate is Php15 per hour. Actual direct
1. Cart Titan Co. produced 3,200 units of product. Each unit requires 2 standard hours. The standard labor rate is Php15 per hour. Actual direct labor for the period was Php79,200 (6,600 actual hours x P12 actual rate). What is the labor efficiency variance? Group of answer choices Php 6,400 UF Php 16,800 F Php 19,800 F Php 3,000 UF
2. Rukia Company manufactures water pumps and uses a standard cost system. The standard overhead costs per water pump are based on direct labor hours and are as follows:
Variable overhead (4 hours at Php8 per hour) Php 32
Fixed overhead (4 hours at Php5 per hour) Php 20
The fixed OH rate is based on a capacity of 140,000 direct labor hours per month.
The following information is available for the month of July:
30,8000 pumps were produced although 35,000 had been scheduled for production
131,600 direct labor hours were worked at a total cost of Php 1,316,000
the standard direct labor rate is Php9 per hour
the standard direct labor time per unit is 4 hours
Variable overhead costs were Php 1,036,000
Fixed overhead costs were Php 756,000
Ichigo's variable overhead efficiency variance for July was
3.
Reiner company sells two products, A and B. The sales mix consists of a composite unit of 2 units of A for every 5 units of Y (2:5) Fixed costs are Php247,500. The unit contribution margins for A and B are, Php12.50 and Php6.00, respectively.
If the company had a profit of Php110,000, the unit sales must have been
Group of answer choices
13,000 and 32,500 for Product A and B, respectively
23,800 and 9,500 for Product A and B, respectively
32,500 and 13,000 for Product A and B, respectively
5,000 and 12,500 for Product A and B, respectively
4.
In 2019, Ymir Company sold its single product for Php10 each. Variable manufacturing costs amounted to Php2.00 per unit. The company needed to sell 17,600units last year in order to breakeven. The net after-tax income last year was Php4,435.20 subjected to a tax rate of 30%. Ymir's expects that sales price will increase to Php12.00, variable manufacturing costs will increase by 1/2 and that fixed costs will increase by 8%.
According to Ymir's expectations for the next year, how many units should it be in order to breakeven?
Group of answer choices
17,600 units
16,459 units
15,986 units
16,896 units
5.
Carla Company is considering discontinuing a certain product line if it does not have a margin of safety higher than 15%. The breakeven sales are php76,800, and the margin of safety is Php13,200. Based on this information, the controller has recommended that ABC keep this product line.
Did the controller make the appropriate decision?
Group of answer choices
No, because the margin of safety ratio of 14.7% is not better than 15%
Yes, because the margin of safety ratio of 14.7% is better than 15%
Yes, because the margin of safety ratio of 17.2% is better than 15%
No, because the margin of safety ratio of 17.2% is not better than 15%
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