Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sashimi Company uses a standard cost accounting system in its glass division. The standard cost of making one glass windshield is: Direct materials (60 lbs.

Sashimi Company uses a standard cost accounting system in its glass division. The standard cost of making one glass windshield is:

Direct materials (60 lbs. @ P 1/lb)

P 60.00

Direct labor (3 hr. @ P 10/hr)

30.00

Manufacturing overhead (3 hr. @ P 8/hr)

24.00

Total standard unit cost

P 114.00

The current variable manufacturing overhead rate is P 3 per labor hour and the budgeted fixed manufacturing overhead is P 2,700. During July, the division produced 165 windshields compared to normal capacity of 180 windshields. The actual production cost was:

Direct materials (9,000 lbs)

P 10,800.00

Direct labor (500 hrs)

4,000.00

Manufacturing overhead (50% fixed)

5,200.00

Total actual cost

P 20,000.00

What is the materials price usage variance?

Group of answer choices

P 1,980 favorable

P 1,800 favorable

P 1,980 unfavorable

P 1,800 unfavorable

How much is the fixed overhead volume variance?

Group of answer choices

P 225 over-applied

P 125 over-applied

P 125 under-applied

P 225 under-applied

How much is the variable overhead spending variance?

Group of answer choices

P 1,100 unfavorable

P 1,100 favorable

P 1,115 unfavorable

P 1,115 favorable

What is the labor rate variance?

Group of answer choices

P 990 unfavorable

P 1,000 favorable

P 1,000 unfavorable

P 990 favorable

What is the materials usage variance?

Group of answer choices

P 900 debit

P 1,080 credit

P 900 credit

P 1,080 debit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions

Question

1. To gain knowledge about the way information is stored in memory.

Answered: 1 week ago