The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated that 40,000 units will be produced at a materials cost of P200.000. Production will require 40,000 man-hours at an estimated wage cost of P80,000. The machines will run about 25,000 hours. 1. How much is the material handling cost driver rate? a. 3,000 b. 8.00 c. 200 d. 110.21 e. 93.00 2. How much is the production set ups cost driver rate? a. 3,000 b. 93 c. 200 d. 8.00 e. 110.21 3. How much is the quality inspection cost driver rate? a. 3,000 b. 200 c. 8.00 d. 93.00 e. 20.00 4. How much is the machine depreciation cost driver rate? a. 93 b. 20 c. 8.00 d. 200 e. 3,000 5. What is the factory overhead rate of material cost is the basis? a. Php 2.00 b. Php 1.00 c. 0.80 d. 4.00 e. 6.40
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The Maria Company estimated its factory
1. How much is the material handling cost driver rate?
a. 3,000
b. 8.00
c. 200
d. 110.21
e. 93.00
2. How much is the production set ups cost driver rate?
a. 3,000
b. 93
c. 200
d. 8.00
e. 110.21
3. How much is the quality inspection cost driver rate?
a. 3,000
b. 200
c. 8.00
d. 93.00
e. 20.00
4. How much is the machine
a. 93
b. 20
c. 8.00
d. 200
e. 3,000
5. What is the factory overhead rate of material cost is the basis?
a. Php 2.00
b. Php 1.00
c. 0.80
d. 4.00
e. 6.40
6. What is the factory overhead rate of Machinery hours is the basis?
a. Php 6.40
b. Php 0.80
c. 2.00
d. 1.00
e. 4.00
7. What is the factory overhead rate if Direct labour cost is the basis?
a. 4.00
b. 6.40
c. 0.80
d. 2.00
e. 1.00
8. What is the factory overhead rate if Units of production is the basis?
a. 2.00
b. 4.00
c. 6.40
d. 1.00
e. 0.80
Step by step
Solved in 4 steps with 2 images
