A firm produced two joint products, X and Y, from one unit of raw material costing Php1,000. Product X can be sold for Php700 and product Y can be sold for Php500 at the split-off point. Alternatively, both X and Y can be processed further and sold for Php900 and Php1,200, respectively. The additional processing costs are Php100 for X and Php750 for Y. Should the firm process products X and Y beyond the split-off point?

Group of answer choices

Only X should be processed further

Both X and Y should be processed further

Only Y should be processed further

Neither product should be processed further

QUESTION 2

Dulce 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 3,000 UF

Php 19,800 F

Php 6,400 UF

Php 16,800 F

question 3

Dindo Company desires an ending inventory of Php62,000 and a beginning inventory of Php55,000. Gross profit is estimated to be 25% of sales. The expected sales amounted to Php320,000. Budgeted purchases would amount to

Group of answer choices

Php247,000

Php240,000

Php370,000

Php230,000

Compasibo Company's product has a labor standard of 2 hours per unit. For 2020, it estimates its production will be 200,000 units. It budgets total overhead at Php900,000, which results in a fixed overhead rate of Php1.50 per hour. Actual data for the year includes: Actual production, 198,000 units (440,000 direct labor hours), Actual variable overhead, Php352,000, Actual fixed overhead. Php575,000.

The variable overhead efficiency variance for 2020 is

Group of answer choices

Php 35,520 F

Php 33,000 F

Php 33,000 UF

Php 66,000 UF

Hualien Company manufactures plugs used in its manufacturing cycle at a cost of Php45 per unit that includes Php10 of fixed overhead. Hualien needs 37,500 of these plugs annually, and Ochado Company has offered to sell these units to Hualien at Php42 per unit. If Hualien decided to purchase the plugs, Php75,000 of the annual fixed overhead applied will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs.

If Hualien Company purchases the plugs but does not rent the unused facility, the company would

Group of answer choices

Lose Php 5.00 per unit

Save Php 3.00 per unit

Save Php 5.00 per unit

Lose Php 3.00 per unit