Multiple Choice Questions Theoretical
Multiple Choice Questions Theoretical
Multiple Choice Questions Theoretical
CHAPTER 6
1. a 6. b 11. c 16. a
2. d 7. a 12. b 17. b
3. a 8. a 13. d
4. a 9. c 14. b
5. a 10. d 15. C
1. (a)
2. (a)
3. (a)
4. (a)
5. (a)
P800,000 / 3.333*
3.333* = P2.40 per machine hour
1/3 hour
hour per
per unit x 10,000 units = 3.333 estimated machine hours.
6. (a)
7. (a)
8. (a)
9. (a)
10. (b)
11. (b)
12. (a)
13. (a)
14. (c)
15. (c)
16. (a)
17. (b)
18. (c)
Budgeted overhead”
Fixed overhead P 585,000
Variable overhead (248,300 x P4.20*) 1,042,860 P1,627,860
Actual manufacturing overhead 1,618,340
Spending variance (F) P 9,520
19. (a)
20 (d)
Actual overhead:
Fixed P348,000
Variable 637,880 P985,880
Applied overhead 995,880
Overapplied overhead P 10,000
21. (b)
22. (b)
Budgeted overhead:
Fixed overhead P348,000
Variable (115,800 x P5.70*) 660,060 P1,008,060
Actual overhead 985,880
Spending variance (F) P 22,180
23. (b)
24. (b)
Sales P790,670
Cost of goods sold:
Finished goods, July 1, 2009 P 33,500
Cost of goods manufactured 450,700
Total available 484,200
Finished goods, June 30, 2010 83,000
Cost of goods sold 401,200
Underapplied overhead 4,200 397,000
Gross profit 393,670
Operating expenses 157,500
Net income (loss) P236,170
25. (b)
26. (c)
28. (b)
29. (c)
30. (c)
PROBLEMS
Problem 6-1
Problem 6-2
Problem 6-3
Problem 6-4
2. Volume variance:
Fixed overhead applied (168,630 x P1.65*) P278,239.50
Fixed overhead budgeted 272,250.00
Volume variance (F) P 5,989.50
Problem 6-5
Elena Machinery Corporation
Income Statement
Year Ended December 31, 2010
Sales P960,500
Sales returns and allowances 43,700
Net Sales 916,800
Cost of goods sold:
Finished goods inventory, 1/1 P98,700
Cost goods manufactured 641,100
Total available 739,800
Finished goods inventory, 12/31 94,500
Cost of goods sold 645,300
Add overapplied overhead 3,500 648,800
Gross profit 268,000
Operating expenses:
Selling expense P 65,400
Administrative expenses 82,500 147,900
Net income before income tax 120,100
Provision for income tax 36,030
Net income after income tax P 84,070
Problem 6-6
Or:
Problem 6-7
Or:
Problem 6-8
Problem 6-9
Spending variance:
Actual overhead P213,100
Budgeted overhead based on Std. hours:
Fixed overhead P 42,000
Variable (62,400 x P2.80) 174,720 216,720
Controllable variance (F) P 3,620
Problem 6-10
Problem 6-11
4. Supplies P 4,000
Indirect labor 30,000
Supervisory salaries 83,000
Building occupancy costs 7,000
Factory equipment costs 12,000
Other factory costs 10,000
Total actual manufacturing overhead P150,000
Problem 6-12
Problem 6-13
2. Supervision P 37,000
Indirect labor 58,100
Utilities 45,600
Depreciation – factory building 15,000
Property tax 8,000
Freight-in 13,000
Depreciation – factory equipment 15,000
Insurance 6,000
Repairs and maintenance 16,500
Miscellaneous 19,800
Total actual manufacturing overhead P234,000
Manuel Company
Statement of Cost of Goods Manufactured and Sold
Month Ended January 31, 2010