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    Standard Costing Problems 3 1

    Uploaded by

    Nikki Garcia
    1. Using data provided, the number of standard hours allowed is 36,000 and actual hours worked is 42,000. 2. The fixed overhead is P792,000. The fixed overhead spending variance is P36,000 F. The variable overhead spending variance is P24,000 F. The standard hours allowed per unit is 2 hours. The labor efficiency variance is P12,000 F. 3. The variable overhead efficiency variance is P3,000 F. The variable overhead spending variance is P0. The fixed overhead volume variance is P3,000 F. The fixed overhead spending variance is P0.

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    Standard Costing Problems 3 1

    Uploaded by

    Nikki Garcia
    764 views2 pages
    1. Using data provided, the number of standard hours allowed is 36,000 and actual hours worked is 42,000. 2. The fixed overhead is P792,000. The fixed overhead spending variance is P36,000 F. The variable overhead spending variance is P24,000 F. The standard hours allowed per unit is 2 hours. The labor efficiency variance is P12,000 F. 3. The variable overhead efficiency variance is P3,000 F. The variable overhead spending variance is P0. The fixed overhead volume variance is P3,000 F. The fixed overhead spending variance is P0.

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    Standard Costing Problems 3 1

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    1. Using data provided, the number of standard hours allowed is 36,000 and actual hours worked is 42,000. 2. The fixed overhead is P792,000. The fixed overhead spending variance is P36,000 F. The variable overhead spending variance is P24,000 F. The standard hours allowed per unit is 2 hours. The labor efficiency variance is P12,000 F. 3. The variable overhead efficiency variance is P3,000 F. The variable overhead spending variance is P0. The fixed overhead volume variance is P3,000 F. The fixed overhead spending variance is P0.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    764 views2 pages

    Standard Costing Problems 3 1

    Uploaded by

    Nikki Garcia
    1. Using data provided, the number of standard hours allowed is 36,000 and actual hours worked is 42,000. 2. The fixed overhead is P792,000. The fixed overhead spending variance is P36,000 F. The variable overhead spending variance is P24,000 F. The standard hours allowed per unit is 2 hours. The labor efficiency variance is P12,000 F. 3. The variable overhead efficiency variance is P3,000 F. The variable overhead spending variance is P0. The fixed overhead volume variance is P3,000 F. The fixed overhead spending variance is P0.

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    Standard costing problems

    1. The flexible budget formula for total overhead for Star Division of ASHLEY Company is P360,000+ P 8
    per direct labor hour. The combined overhead rate is P20 per direct labor hour. The following data have
    been recorded for the year 2014:

    Actual total overhead for 2014 P580,000

    Total overhead spending variance 16,000 U

    Volume variance 24,000 U

    Using the three-way approach, determine the number of standard hours allowed and actual hours of
    direct labor hours worked.

    2. Norris Company produces telephones. To help control costs, Norris employs a standard costing
    system and uses a flexible budget to predict overhead costs at various levels of activity. For the most
    recent year, Norris used a standard overhead rate of P18 per direct labor hour. The rate was computed
    using practical activity. Budgeted overhead cost are P792,000 for 36,000 direct labor hours and
    P1,080,000 for 60,000 direct labor hours. During the past year, Norris generated the following data:

    a. Actual production: 100,000 units


    b. Fixed overhead volume variance: P36,000 U
    c. Variable overhead efficiency variance: P24,000 F
    d. Actual fixed overhead cost: P380,000
    e. Actual variable overhead cost: P620,000
    REQUIRED:
    1. Calculate the fixed overhead.
    2. Determine the fixed overhead spending variance.
    3. Determine the variable overhead spending variance.
    4. Determine the standard hours allowed per unit of product.
    5. Assuming the standard labor rate is P13 per hour, compute the labor efficiency variance.
    3. Factory Overhead Variance analysis. Simon enterprises applies variable overhead at a rate of P1.50
    per direct labor hour and fixed overhead at a rate of P1.75 per direct labor hour. The company budgets
    two direct labor hours for each of the 6,000 units that are scheduled for production. Simon occurred
    actual variable overhead totalling P18,700 and actual fixed overhead totalling P21,500 last year for the
    production of 5,900 units. In addition, 11,800 direct labor hours were actually incurred.
    REQUIRED:
    1. Calculate the variable overhead efficiency variance.
    2. Calculate the variable overhead spending variance.
    3. Calculate the fixed overhead volume variance.
    4. Calculate the fixed overhead spending variance.

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