Francis Company produces scarf for ladies. the data for production and marketing are indicated below:

Cost per yard of cloth P40

Allowance for rejected scarf 5% of production

Yards of cloth needed per scarf 0.475 yard

Airfreight from supplier P1 per yard

Motor freight to customer P0.90 per scarf

Purchase discount from supplier 3%

Sales discount to customer 2%

The allowance for rejected scarf is not part of the 0.475 yard of cloth per scarf. Rejects have no market value. Materials are used at the start of production.

Calculate the standard cost per scarf that Francis Company should use in its cost sheets.

2.The following direct labor information pertains to the manufacture of Part X:

Number of hours to make a part 2.5DLH

Number of direct workers 75

Number of total productive hours per week 3,000

Weekly wages per worker P1,000

Laborer's fringe benefits treated as direct labor costs 25% of wages.

What is the standard direct labor costs per unit of part X

3.Boracay Company is a chemical manufacturer that supplies various products to industrial users. The company plan to introduce a new chemical solution called Bees, for which it needs to develop a standard product cost. The following labor information is available on the production of Bees:

• The product, which is bottled in 10-liter containers, is primarily a mixture of Byclyn, Sales and Protet.
• The finished product is highly unstable, and one 10-liter out of six is rejected at final inspection. rejected batches have no commercial value and are thrown out.
• It takes a worker a 35 minutes to process a 10 liter batch of Bees. Employees work on eight-hour a day, including one hour per day for rest breaks and cleanup

What is the standard labor time to produce one 10-liter batch of Bees?

4.The standard usage for raw materials is 5 pounds at 40 per pound. The Bacoor Company spent P131,200 in purchasing 3,200 pounds. Bacoor used 3,150 pounds to produce 600 units of finished product. The material quantity variance is:

5.J Company uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material in inventory were purchased for P105,000 and two units of raw materials are required to produce one unit of final product. The standard allowed for material was P60,000, and there was an unfavorable quantity variance of P2,500. The material price variance for the units used in November was: