Question
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
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