1) Sales and costs data for Mariposa Company's new product are as follows: Sales (P22.50 per unit) P225,000 Variable mfg. costs per unit 12.00 Variable selling and adm. costs per unit 4.50 Annual fixed costs: Manufacturing P37,500 Selling and adm. P22,500 There was no inventory at the beginning of the year. Normal capacity is 12,500 units. During the year 12,000 units were manufactured. The cost of ending inventory would be Direct costing Absorption costing a. P30,000 P37,500 b. 24,000 30,000 c. 37,500 30,000 d. 24,000 37,500

2. Romel Company uses a standard cost system. The following data pertain to factory overhead: Actual total overhead P44,000 Budgeted fixed overhead 12,600 Standard overhead rate per hour 2.50 Actual direct labor hours 16,000 Standard direct labor hours 17,000 Normal capacity in labor hours 14,000 What is the overhead controllable variance? Overhead volume variance? Controllable Volume a. P4,200 U P2,700 F b. P4,200 F P2,700 U c. P4,000 U P7,500 F d. P4,000 F P7,500 U

3. The following information was made available to you by Coronet Co. which is using a standard cost system: Normal capacity Actual capacity Units produced 10,000 9,950 Hours of Direct Labor 5,000 5,010

Factory overhead Variable overhead P12,000 Fixed overhead 8,000 P20,000 P18,500 How much is the total overhead variance? a. P1,500 unfavorable b. P1,400 favorable c. P1,400 unfavorable d. P1,540 unfavorable

4. Extel Company uses a standard cost system. The following data pertain to its direct labor: Actual direct labor hours (including idle time of 200 hours) 20,000 Standard direct labor hours allowed for the actual production 21,000 Unfavorable labor rate variance P3,000 Total payroll P126,000 What is the labor efficiency variance? a. P7,380 favorable b. P8,610 favorable c. P6,150 favorable d. P6,300 favorable

5. An analysis of clerical costs in the billing department of Craig Company indicates that total unit (variable and fixed) processing costs will be P.50 per account processed at an activity level of 32,000 accounts. When only 22,000 accounts are processed, the total cost of processing is P12,500. Given these data, at a budgeted level of 25,000 accounts a. Processing costs will total P8,750 b. Fixed processing costs will be P10,400 c. The variable processing costs will equal P.35 per account processed d. Processing costs will total P14,975

INFORMATION FOR THE NEXT TWO ITEMS: Armstrong Products Armstrong Products applies fixed overhead at a rate of P3 per direct labor hour. Each unit produced is expected to take 2 direct labor hours. Armstrong expected production in the current year to be 10,000 units but 9,000 units were actually produced. Actual direct labor hours were 19,000 and actual fixed overhead costs were P62,000. 6. Refer to the Armstrong Products information above. Armstrong's fixed overhead spending variance is: a. P8,000 FAVORABLE b. P8,000 UNFAVORABLE c. P2,000 FAVORABLE d. P2,000 UFAVORABLE 7. Refer to the Armstrong Products information above. Armstrong's fixed overhead volume variance is: a. P2,000 b. P6,000 c. P8,000 d. P 0

INFORMATION FOR THE NEXT TWO ITEMS: Sampson Apparel Inc. Sampson Apparel Inc. incurred actual variable overhead expenses of P62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of P2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production.

8. Refer to the Sampson Apparel Inc. information above. What was Sampson's variable overhead spending variance? a. P4,000 UNFAVORABLE b. P4,000 FAVORABLE c. P2,000 UNFAVORABLE d. P2,000 FAVORABLE 9. Refer to the Sampson Apparel Inc. information above. What was Sampson's variable overhead efficiency variance? a. P4,000 UNFAVORABLE b. P4,000 FAVORABLE c. P2,000 UNFAVORABLE d P2,000 FAVORABLE

INFORMATION FOR THE NEXT FOUR ITEMS: Carlton Corporation Carlton Corporation produces and sells faux-leather handbags. In the current year, the company budgeted for the production and sale of 1,000 handbags; however, 900 handbags were actually produced and sold. Each bag has a standard requiring two yards of material at a cost of P4.00 per yard and 1 hour of assembly time at a cost of P9.50 per hour. Actual costs for the production of 900 bags were P7,215 for materials (1,850 yards purchased and used @ P3.90 per yard) and P10,125 for labor (1,125 hours @ P9.00 per hour).

10. Refer to the Carlton Corporation information above. Carlton's direct materials price variance is: a. P195 UNFAVORABLE b. P 15 UNFAVORABLE c. P185 FAVORABLE d. P180 FAVORABLE 11. Refer to the Carlton Corporation information above. Carlton's direct materials usage variance is: a. P585 UNFAVORABLE b. P600 UNFAVORABLE

c. P195 FAVORABLE d. P200 UNFAVORABLE 12. Refer to the Carlton Corporation information above. Carlton's direct labor rate variance is: a. P562.50 FAVORABLE b.P562.50 UNFAVORABLE c. P450.00 FAVORABLE d. P450.00 UNFAVORABLE 13. Refer to the Carlton Corporation information above. Carlton's direct labor efficiency variance is: a. P 562.50 FAVORABLE b. P2,137.50 UNFAVORABLE c.P1,187.50 UNFAVORABLE d. P2,025.00 FAVORABLEFAVORABLE