MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: Direct Materials Direct Labor Input required per unit Standard cost per unit Standard cost per unit 6 kg per unit 5 hours per unit P90 per kg P50 per hour P540 P250 Other information follows: Budgeted factory overhead for the year: Variable Fixed 480,000 600,000 The company's normal capacity per month is 400 units Actual cost materials purchased for the year is P2,342,000 During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours Actual production during the year 5,150 units

MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted from the historical records and performance reports issued by the cost accounting department in the prior year to assist in her analysis and evaluation of the standard costing policy of the company: Direct Materials Direct Labor Input required per unit Standard cost per unit Standard cost per unit 6 kg per unit 5 hours per unit P90 per kg P50 per hour P540 P250 Other information follows: Budgeted factory overhead for the year: Variable Fixed 480,000 600,000 The company's normal capacity per month is 400 units Actual cost materials purchased for the year is P2,342,000 During the year, direct materials purchased is 26,880 kg while direct materials actually used is 24,760 kgs Actual labor costs for the year 1,080,000 of which 24,900 direct labor hours was consumed Actual factory overhead amounted to 1,320,000, 65% of which is fixed cost, FOH is based on labor hours Actual production during the year 5,150 units

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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