PROBLEM II, Irish Corporation uses a standard costing system for a product that it manufactures, For the year 200A, the following standards were established based on normal production of 1,000 units: Cost per Unit 12 Materials Labor Variable Overhead Fixed Factory Overhead (5 hours @ P2) Total Standard Cost per Unit 2 pcs @ P6 per piece 5 hrs e P4 per hour 5 hrs O P3 per hour 20 15 10 57 Following are the actual data for the year 200A: Production 1,100 units 950 units P 80 13,050 23,306 Sales Selling Price Materials (2,250 @P 5,80) Labor (5,420 hours @P 4,30 per hour Variable Overhead Fixed Factory Overhead Selling & Admin Expenses - Variable Selling & Admin Expenses - Fixed 15,718 12,000 5,700 8,000 Required: 1. Variances for each cost element of production 2. Comparative Income Statements - Absorption and Variable Costing

PROBLEM II, Irish Corporation uses a standard costing system for a product that it manufactures, For the year 200A, the following standards were established based on normal production of 1,000 units: Cost per Unit 12 Materials Labor Variable Overhead Fixed Factory Overhead (5 hours @ P2) Total Standard Cost per Unit 2 pcs @ P6 per piece 5 hrs e P4 per hour 5 hrs O P3 per hour 20 15 10 57 Following are the actual data for the year 200A: Production 1,100 units 950 units P 80 13,050 23,306 Sales Selling Price Materials (2,250 @P 5,80) Labor (5,420 hours @P 4,30 per hour Variable Overhead Fixed Factory Overhead Selling & Admin Expenses - Variable Selling & Admin Expenses - Fixed 15,718 12,000 5,700 8,000 Required: 1. Variances for each cost element of production 2. Comparative Income Statements - Absorption and Variable Costing

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Description: PROBLEM II, Irish Corporation uses a standard costing system for a product that itmanufactures, For the year 200A, the following standards were established based onnormal production of 1,000 units:Cost per Unit12MaterialsLaborVariable Overhead2 pcs

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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