Items 16 to 18 are based on the following information: A manufacturer of radios purchases components from subcontractors for assembly into complete radios. Each radio requires three units each of Part X, which has a standard cost of P 2.90 per unit. During June, the company had the following experience with respect to Part X. Purchases (P 36,000) Consumed in manufacturing Radios manufactured 12,000 units 10,000 units 3,000 units 16. During June, the company incurred a materials purchase-price variance of a. P 900 unfavorable b. P 900 favorable c. P 1,200 unfavorable d. P 1,200 favorable 17. During June, the company incurred a materials efficiency variance of a. P 2,900 unfavorable b. P 2,900 favorable c. P 8,700 unfavorable d. P 8,700 favorable 18. What is the amount that will be shown on a flexible budget for Part X usage during the month of June? a. P 26,100 b. P 27,000 C. P 29,000 d. P 36,000

Items 16 to 18 are based on the following information: A manufacturer of radios purchases components from subcontractors for assembly into complete radios. Each radio requires three units each of Part X, which has a standard cost of P 2.90 per unit. During June, the company had the following experience with respect to Part X. Purchases (P 36,000) Consumed in manufacturing Radios manufactured 12,000 units 10,000 units 3,000 units 16. During June, the company incurred a materials purchase-price variance of a. P 900 unfavorable b. P 900 favorable c. P 1,200 unfavorable d. P 1,200 favorable 17. During June, the company incurred a materials efficiency variance of a. P 2,900 unfavorable b. P 2,900 favorable c. P 8,700 unfavorable d. P 8,700 favorable 18. What is the amount that will be shown on a flexible budget for Part X usage during the month of June? a. P 26,100 b. P 27,000 C. P 29,000 d. P 36,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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