Variance Analysis Prelim Exam (2)

Petite, Inc. incurred actual variable overhead expenses of P62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of P2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production.

What was Petite's variable overhead spending variance?

• P4,000 U

• P4,000 F

• P2,000 F

• P2,000 U

Petite, Inc. incurred actual variable overhead expenses of P62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of P2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production.

What was Petite's variable overhead efficiency variance?

• P4,000 U

• P4,000 F

• P2,000 F

• P2,000 U

• P7,600 F

• P7,600 U

• P19,600 U

• P19,600 F

Fixed manufacturing overhead was budgeted at P500,000 and P25,000 direct labor hours were budgeted. If the fixed overhead volume variance was P12,000 favorable and the fixed overhead spending variance was P16,000 unfavorable, fixed manufacturing applied must be

P512,000

Paper Products applied fixed overhead at a rate of P3 per direct labor hour. Each unit produced is expected to take 2 direct labor hour. Paper Products expected production in the current year to be 10,000 units but 9,000 units were actually produced. Actual direct labor hours were 19,000 and actual fixed overhead costs were P62,000.

Paper Products' fixed overhead spending variance is:

• P2,000 U

• P2,000 F

• P8,000 F

• P8,000 U

Fixed manufacturing overhead was budgeted at P500,000 and P25,000 direct labor hours were budgeted. If the fixed overhead volume variance was P12,000 favorable and the fixed overhead spending variance was P16,000 unfavorable, fixed manufacturing applied must be

P512,000

Paper Products applied fixed overhead at a rate of P3 per direct labor hour. Each unit produced is expected to take 2 direct labor hour. Paper Products expected production in the current year to be 10,000 units but 9,000 units were actually produced. Actual direct labor hours were 19,000 and actual fixed overhead costs were P62,000.

Paper Products’ fixed overhead volume variance is

• P6,000

• P2,000

• P8,000

• 0

• P3,000 F

• P5,400 F

• P3,000 U

• P5,400 U

• P1,000 F

• P6,000 F

• P1,000 U

• P6,000 U

Budgeted variable variance for the level of production achieved is P40,000 machine-hours at a budgeted cost of P62,000. Actual variable overhead at the level of production achieved was 38,000 hours at an actual cost of P62,400. What is the total variable overhead variance?

• P400 F

• P400 U

• P3,100 U

• P3,100 F

• P31,500

• P32,375

• P30,625

• P33,259

The variable overhead spending variance is P1,080 unfavorable. Variable overhead budgeted at 40,000 machine hours is P50,000. Actual machine hours were 36,000. What was the actual variable overhead rate per machine hour?

• P1.28

• P1.25

• P1.39

• P1.22