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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

FINANCIAL ACCOUNTING
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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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 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 12,000 units 10,000 units 3,000 units 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
Transcribed Image Text: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 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 12,000 units 10,000 units 3,000 units 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
25. Flea Corporation's industrial engineers have established certain labor standards that call for 10 units an hour at a union contract rate of P 5 per hour. Last month, 50,000 units of products were produced using 6,000 direct labor hours (including idle time of 200 hours due to power outages) Because of job shifts, the average direct labor rate was P 6 per hour. What is Flea Corporation's (1) labor efficiency variance and (2) idle-time variance? a. (1) P 5,000 U (2) P 1,000 U b. C. (1) P 4,000 U (2) P 1,000 F (1) P 4,000 U (2) P 1,000 U d. (1) P 4,000 F (2) P 1,000 U
Transcribed Image Text:25. Flea Corporation's industrial engineers have established certain labor standards that call for 10 units an hour at a union contract rate of P 5 per hour. Last month, 50,000 units of products were produced using 6,000 direct labor hours (including idle time of 200 hours due to power outages) Because of job shifts, the average direct labor rate was P 6 per hour. What is Flea Corporation's (1) labor efficiency variance and (2) idle-time variance? a. (1) P 5,000 U (2) P 1,000 U b. C. (1) P 4,000 U (2) P 1,000 F (1) P 4,000 U (2) P 1,000 U d. (1) P 4,000 F (2) P 1,000 U
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