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?

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

The following costs pertain to Materials:

Actual cost of materials for the actual production P27,300

Standard cost of materials for the actual production 26,300

Standard cost of materials actually used 26,000

How much is the Materials Price Variance?

a. P1,000 U

b. P1,300 U

c. P300 F

d. P1,300 F

Each finished unit of Product ET - 25 has 60 pounds of raw material. The manufacturing process must provide for a 20% waste allowance. The raw material can be purchased for P2.50 a pound under terms of 2/10, n/30. The company takes all cash discounts. The standard direct material cost for each unit of Product ET - 25 is

a. P180

b. P183.75

c. P187.50

d. P176.40

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

Alix Company has budgeted its factory overhead at P15,875 when it operates at 70% of normal capacity. At 80% capacity, the budgeted overhead is P17,000. What is the flexible budget of factory at 96% capacity?

a. P18,840

b. P18,800

c. P20,400

d. P21,771

The Kabisig Co. manufacturers and sells Batik handbags in assorted prints. Data for the previous year were as follows:

Selling price per piece P8

Variable cost per piece 2

No. of pieces to breakeven 25,000

Net income last year P5,850

For the coming year, the company estimates that selling price will be P9.50 per piece, variable cost to manufacture increase by 25% and fixed costs will increase by 10%. Income tax rate of 35% will not change.

What is the selling price per piece that would give the same contribution margin rate as previous year?

a. P10.00

b. P 9.00

c. P10.50

d. Answer not given