ENCHANTRESS CORP. is applying overhead with direct labor hours as itsbasis. Four direct labor hours are needed to produce one unit of finishedgoods. Planned production for the period was set at 15,000 units. Budgetedmanufacturing overhead amounted to P150,000 for the period, of which 40%of this cost is fixed. The 18,000 direct labor hours during the period resultedin producing 10,000 units. For the current month, the company incurredvariable manufacturing overhead amounting to P65,000 and fixedmanufacturing overhead cost was P50,000.How much is the total budget variance?a. P165,000 Fb. P165,000 UFP5,000 UFd. P5,000 FC.2. How much is the total spending variance?a. P38,000 Fb. P38,000 UFP28,000 UFd. P 5,000 FC. 42. MOGUL CORP. is a newly-organized company planning to produce and sellcustomized rubber shoes to be used mostly by athletes and students indifferent school levels. Since the company is new to the market, it is anxiousand it would like to seek for your help in its profit planning and breakevenpoint determination.The cost structure of the product at 20,000 units is as follows:Variable cost:ManufacturingNon-manufacturingP6.002.00Fixed cost (per month):ManufacturingNon-manufacturingP250,000150,000MOGUL's marketing department has predicted that the demand for thecompany's product will exceed its 20,000 units that it can produce and sell.Additional manufacturing space can be rented from another company at afixed cost of P40,000 per month with a variable cost totaling to P12 per unit.The company's selling price is P18 per unit.The breakeven point per month of the product is:....

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Description: ENCHANTRESS CORP. is applying overhead with direct labor hours as itsbasis. Four direct labor hours are needed to produce one unit of finishedgoods. Planned production for the period was set at 15,000 units. Budgetedmanufacturing overhead amounted t

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ENCHANTRESS CORP. is applying overhead with direct labor hours as its basis. Four direct labor hours are needed to produce one unit of finished goods. Planned production for the period was set at 15,000 units. Budgeted manufacturing overhead amounted to P150,000 for the period, of which 40% of this cost is fixed. The 18,000 direct labor hours during the period resulted in producing 10,000 units. For the current month, the company incurred variable manufacturing overhead amounting to P65,000 and fixed manufacturing overhead cost was P50,000. How much is the total budget variance? a. P165,000 F b. P165,000 UF C. P5,000 UF d. P5,000 F 2. How much is the total spending variance? a. P38,000 F b. P38,000 UF C. P28,000 UF d. P5,000 F

ENCHANTRESS CORP. is applying overhead with direct labor hours as its basis. Four direct labor hours are needed to produce one unit of finished goods. Planned production for the period was set at 15,000 units. Budgeted manufacturing overhead amounted to P150,000 for the period, of which 40% of this cost is fixed. The 18,000 direct labor hours during the period resulted in producing 10,000 units. For the current month, the company incurred variable manufacturing overhead amounting to P65,000 and fixed manufacturing overhead cost was P50,000. How much is the total budget variance? a. P165,000 F b. P165,000 UF C. P5,000 UF d. P5,000 F 2. How much is the total spending variance? a. P38,000 F b. P38,000 UF C. P28,000 UF d. P5,000 F

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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