MANAGERIAL ACCOUNTING

NEED THE ANSWERS ASAP!

PLEASE MAKE SURE ITS CORRECT!

Gugma Corporation uses a standard cost system to collect costs related to the production of its platinum plates. The direct labor standard for each platinum plate is 4 hours. Its standard cost of P120 per hour.

During July, production used 5,730 direct labor-hours at an average direct labor cost of P118 per hour. This resulted to 1,420 platinum plates.

Determine the following using the following data above:

1. Direct labor rate variance =
2. Direct labor efficiency variance =
3. Total direct labor spending variance =

Indicate whether the variance is favorable or unfavorable. Follow the format for your final answer: xx,xxxx.xx FAVORABLE or xx,xxx.xx UNFAVORABLE. (For example, 20,050.00 FAVORABLE or 17,500.50 UNFAVORABLE). Round off final answers to two decimal places.)

The financial performance (in Philippine Pesos) of Gugma Corporation's two segments are shown below:

	KULATING	PIKAT
Sales	1,425,000	480,000
Net operating income	391,875	127,200
Average operating assets	712,500	160,000
Minimum required rate of return	14%	10%

Determine the following:

1. Margin of Pikat =
2. Turnover of Kulating =
3. Return on Investment of Pikat =

For requirements 1 and 3, follow the format: xx.xx% as in 12.50% or 12.00%

Gugma Corporation has established the following material standards for raw material HRYA, a major element of their best-selling product.

Standard quantity per unit of output	4.50	grams
Standard price	P11.40	per gram

During the recent month ending, 7,225 grams of HRYA were purchased at P11.50 per gram. Of these 6,510 grams were used to produce 1,500 units of their product.

Determine the following using the following data above:

1. Direct material price variance =
2. Direct material quantity variance =

Indicate whether the variance is favorable or unfavorable. Follow the format for your final answer: xx,xxxx.xx FAVORABLE or xx,xxx.xx UNFAVORABLE. (For example, 20,050.00 FAVORABLE or 17,500.50 UNFAVORABLE). Round off final answers to two decimal places.)

Gugma Corporation registered total sales of P350,000 and total fixed expense of P35,050. It had a contribution margin ratio of 35%. It had P530,000 average operating assets for the given year.

Determine the following:

1. Compute for the return on investment for the period. =
2. Compute for the revised return on investment assuming fixed expense decreased by P4,755 and average operating assets decreased by P 17,750. =

For both requirements, follow the format: xx.xx% as in 12.50% or 12.00%