Title | SCM Chapter 6 Answer Key |
---|---|
Author | Kabang Ayam |
Course | Bachelor of Science in Accountancy |
Institution | Sorsogon State College |
Pages | 13 |
File Size | 257.9 KB |
File Type | |
Total Downloads | 384 |
Total Views | 510 |
Chapter 6 Standard CostingAnswer KeyI TRUE OR FALSE1 FALSE 11 TRUE 21 TRUE 31 FALSE2 TRUE 12 TRUE 22 TRUE 32 FALSE3 TRUE 13 FALSE 23 FALSE 33 TRUE4 TRUE 14 TRUE 24 TRUE 34 TRUE5 FALSE 15 FALSE 25 FALSE 35 TRUE6 TRUE 16 FALSE 26 FALSE 36 TRUE7 FALSE 17 TRUE 27 FALSE 37 TRUE8 FALSE 18 TRUE 28 TRUE 38 ...
Chapter 6 Standard Costing Answer Key TRUE OR FALSE
I 1 2 3 4 5 6 7 8 9 10
FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE
11 12 13 14 15 16 17 18 19 20
TRUE TRUE FALSE TRUE FALSE FALSE TRUE TRUE TRUE FALSE
21 22 23 24 25 26 27 28 29 30
TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE FALSE TRUE
31 32 33 34 35 36 37 38 39 40
FALSE FALSE TRUE TRUE TRUE TRUE TRUE FALSE FALSE FALSE
MULTIPLE CHOICE QUESTIONS
II 1 2 3 4 5 6 7 8 9 10
C C NO #3 A A B A D C B
11 12 13 14 15 16 17 18 19 20
C D C B C A B A C B
21 22 23 24 25 26 27 28 29 30
A D D C B C A A C C
31 32 33 34 35
D B C D C
MULTIPLE CHOICE PROBLEMS
III 1
A
P3,200 FAV
(AQ - SQ ) X SP = [ 11,200 - (6,000 x 2)] x P4 =
2
B
P6,400 FAV
Actual direct labor cost Std. allowed at Std rate = 2,400 x 2 hrs x P12 = Total direct labor variance
51,200.00 57,600.00 (6,400.00) favorable
3
B
P400 FAV
Actual cost (AR x AH) Stabdard cost at actual hours = SR x AH = P5 x 4,000 = Rate variance favorable
19,600.00 20,000.00 (400.00) favorable
4
C
P19 / dlh
Actual cost = AR x AH * ? X 8,400 hrs =
159,600.00
Standard cost at actual hours = SR x AH P18 x 8,400 = Direct labor rate variance - unfavorable
151,200.00 8,400.00
*P159,600 / 8,400 hours = P19
(3,200.00) favorable
per direct labor hour
+
5
B
P2,000
Let X as the overhead variance P4,000 + 2X + X = P10,000 3X = P6,000 X = P6,000 / 3 =
2,000.00
6
B
(AP - SP ) X AQ
7
C
(AQ - SQ ) X SP
8
D
P6.00
P900 / 150 =
6.00
9
B
P.40
P6,000 / 15,000 =
0.40
10
D
P11.00
Actual price Favorable variance per unit = P80,000 / 40,000 units = Standard price per unt
11
C
P150 F
Materials price variance - fav Materials quantity variance - unfav Total materials variance - fav
600.00 (450.00) 150.00
12
B
P1,200 U
MPV = (AP - SP) X AQ = (P6 - P6.60 ) x 2,000 =
1,200.00
13
A
P1,200 U
MQV = (AQ - SQ ) x SP = (2,000 - 1,800) x P6.00 =
1,200.00
14
A
P2,400 U
MPV = (AP - SP) X AQ = (P6 - P6.60 ) x 2,000 = MQV = (AQ - SQ ) x SP = (2,000 - 1,800) x P6.00 = TOTAL VARIANCE - UNFAVORABLE
1,200.00 1,200.00 2,400.00
15
B
P420 FAV
16
A
14,000 hours
MPV = (AP - SP) x SQ = [(P10,080 / 4,200) - P2.50] X 4,200 = (P2.40 - P2.50) x 4,200 = Standard hours allowed = actual production x std. hours per unit actual units = 4,000 Standard hours per unit 3.5 hours
17 A
P4,500 unf P10,000 fav
Standard price P100,000 / 50,000 = P2.00 MPV (P2.10 - P2.00) x 45,000 = P4,500 unf MQV = (50,000 - 45,000) x P2.00 = P10,000 fav
18 D
P121,800
P5.80 x 21,000 = P121,800
19 A
P195,000
SOHR = P1.00 + P4.00 = P5.00 x 39,000 = P195,000
20 D
P12,000 underabsorbed
FOH 90% activity = 24,000 x P6.50 = FOH Applied - 90% =24,000 x P6.00 = Underabsorbed FOH
9.00 2.00 11.00
420.00
14,000
121,800.00
156,000.00 144,000.00 12,000.00
21 C
P20,700 unf
Actual labor rate P241,500/34,500 Std. Labor rate P3,200 / (35,000 -34,500) Difference Actual direct labor hours Direct labor rate variance
22 A
P1,250 unf
M U V (2,300 - 2,100) x P6.25
23 D
P87,000
24 B
P1,100 favorable
7.00 6.40 0.60 34,500 20,700 1,250.00
FOH Applied P42,000 + P30,000 Add Underapplied FOH Actual FOH
72,000 15,000 87,000
MPV = (AP - SP) x AQ = = (P1.20 - P1.25) x 22,000 units =
1,100.00 Fav.
25 B
P6.00
Direct materials standard cost per unit = 2 lbs x P3.00 =
26 A
P1,680 U
Labor rate variance = (AR - SR ) x AH = (P24.40 - P24 ) X 4,200 =
27 D 28 A
29 D
30 A
6.00
1,680.00 Unf.
materials quantity variance is a responsibility of the production department. 120,000 lbs
P6,000 U
P3,000 UF
MQV = (AQ - SQ ) x SP P30,000 = [ AQ - (10 x 10,000 units)] x P1.50 P30,000 = (AQ - 100,000) x P1.50 = AQ = P180,000 / P1.50 =
LEV = (AH - SH) X SR = (6,300 - [3 x 2,000]) x P20 = (6,300 - 6,000) x P20 = Actual overhead Budgeted OH based on Standard: Fixed Overhead VOH applied = 24,000 x P6.00
120,000.00 lbs
6,000.00 Unfav
P220,000.00 1,000.00 unf P75,000.00 144,000.00
219,000.00 3,000.00 unf
Applied overhead = 24,000 x P9.00 = TOTAL VARIANCE 31 C
32 D
33 C
P520 unfav
P6,000 unf
11,120
216,000 4,000.00 unf
MQV = (AQ- SQ) x SP = (6,400 - [1000 x P6.00]) x P1.30 = (6,400 - 6,000) x P1.30 = Actual Factory OH BOH at std. Hours: Fixed VOH 32,000 x P5.00 Budget variance Std. Direct labor hours add Unfav. labor hours usage (P4,200 / P3.75) Actual hours
520.00 Unfav 230,000.00
64,000.00 160,000.00
224,000.00 6,000.00 10,000 1,120 11,120
unf
34 B
P3.45
35 B
P6,000 fav
Actual FOH (P73,000 + P17,000) FOH applied (P2.50 + P0.50 ) x 32,000 Total FOH variance
36 B
P2,000 fav
Actual price (P40,000 / 20,000) = P2.00 Materials price variance (P2.00 - P2.10) x 20,000
37 D
P6,000 unf
38 A
1,400
Standard purchase price per unit less Difference (P240 / 1,600) fav Actual purchase price per unit
3.60 0.15 3.45 90,000.00 96,000.00 (6,000.00) fav.
=
Actual Overhead Std. Overhead applied Total overhead variance
2,000.00 86,000.00 80,000.00 6,000.00 unf
Std. Hours allowed less favorable labor efficiency variance in ho P600/P6.00 Actual hours
1,500 100 1,400
CORRECTION FOR PROBLEM RELATED TO MC # 39 TO 47 Fixed overhead per hour, base on 11,990 hours instead of 11,900 hours. 39 A 40 C
41 B 42 A
P7,950 U P2,200 U
P6,330 U P6,930 U
Actual Variable OH P29,950.00 Budgeted overhead based on actual input P2.50 x 8,800 22,000.00 Applied Variable OH rate at standard quantity of input based on actual output P2.50 x (4,400 x 2.20 hrs.) = 24,200.00 Actual Fixed factory overhead Budgeted Fixed overhead - lumpsum 11,990 budgeted hours at P3.00 Appli ed Fixed factory overhead P3.00 x (4,400 x 2.2 hours)
P7,950 spending variance - unf
P2,200.00 efficiency variance - fav
P42,300.00 P6,330 fixed spending variance - unf 35,970.00 P6,930 fixed volume variance - unf 29,040.00
43 D 44 B 45 C
P14,280 U P2,200 U P6,930 U
Actual Factory OH P72.250.00 Budgeted overhead based on actual input Budgeted Fixed overhead - lumpsum 11,990 budgeted hours at P3.00 35,970.00 Variable overhead at actual hours P2.50 x 8,800 hours 22,000.00 Total budgeted OH 57,970.00 Budgeted Overhead based on Standard input allowed Budgeted Fixed overhead - lumpsum 11,990 budgeted hours at P3.00 35,970.00 Variable Overhead based on std allowed P2.50 x (4,400 x 2.2 hours) 24,200.00 60,170.00 Appli ed Fixed factory overhead (P2.50 + P3.00) x (4,400 x 2.2 hours) 53,240.00
46 D 47 C
P12,080 U P6,930 U
Actual Factory OH P72.250.00 Budgeted Overhead based on Standard input allowed Budgeted Fixed overhead - lumpsum 11,990 budgeted hours at P3.00 35,970.00 Variable Overhead based on std allowed P2.50 x (4,400 x 2.2 hours) 24,200.00 60,170.00 Appli ed Fixed factory overhead (P2.50 + P3.00) x (4,400 x 2.2 hours) 53,240.00
P14,280 spending variance - unf
P2,200 efficiency variance - fav
P6,930 fixed volume variance - unf
P12,080 controllable(budget) variance - unf
P6,930 fixed volume variance - unf
PROBLEMS 6.1 Actual overhead
196,000.00
Applied overhead = 40,000 hours at P5 per dlh
200,000.00
Total variance - favorable
(4,000.00)
6.2 a
Raw Materials Inventory
12,000.00
Materials Price Variance
300.00
Accounts Payable b
Work in Process Inventory ( 5,800 x P2*) Materials Quantity Variance Raw Materials Inventory (5,600 x P2) *P12,000 /6,000 units = P2.00
11,700.00 11,600.00 400.00 11,200.00
6.3 Ingredients
per 100 gallon
Lime CU drink
1,960 oz
Granulated sugar
amount
Standard
Standard
Standard
Standard
per gallon
waste
usage
Price
Cost
19.60
2.00%
20.00
0.1500
3.00
40 lbs
0.40
20.00%
0.50
0.6000
0.30
Blackberry fruit
63 pcs
0.63
10.00%
0.70
0.8000
0.56
Protein tablets
100 tablets
1.00
0.00%
1.00
0.9000
0.90
Water
4,000 oz
40.00
0.00%
40.00
0.0025
0.10
Standard cost per gallon
4.86
a
.98X = 19.60 ounces of cu drink =
X =
b
.80X = 40 pounds 0f sugar =
X =
20.00 0.50
c
.90X = .63 blackberry fruit =
X =
0.70
6.4 Actual cost (AP x AQ)
32,800 x P9.50 =
311,600.00
Adjusted cost (SP x AQ)
32,800 x P10.00 =
328,000.00
Standard cost ( SP x SQ)
32,000 x P10 =
320,000.00
P16,400 MPV Fa P8,000 MQV Un TOTAL VARIANCE =
8,400.00
6.5 Case 1
Case 2
Case 3
Case 4
Units produced standard hours per unit
800.00 3.00
750.00 0.80
240.00 2.00
1,500.00 3.00
standard hours allowed standard rate per hour
2,400.00 7.00
600.00 10.40
480.00 9.50
4,500.00 6.00
2,330.00 15,844.00
675.00 5,940.00
456.00 4,560.00
4,875.00 26,812.50
actual hours worked actual labor cost labor rate variance labor efficiency variance
P466 F P490 F
P1,080 F P780 U
P228 U P228 U
P2,437.5 F P2,250 U
Case 1 Standard hours allowed 800 x 3 = 2,400 LRV = AQ (AP - SP) P466 = 2,300(AP - P7.00) - 466 = 2,330AP - 16,100 16,100.00 LEV = SP (AQ - SQ)
AP =
Units produced Standard Price
600 / .80
=
2,330AP = 16,310 - 466
(16,310 - 466) /2,330 P7.00 (2,330 - 2,400)
15,844.00 490.00 Fav
AP =
Case 2
LEV = SP (AQ - SQ)
750.00 780 = SP(600 - 675)
10.40
780 = 75SP
Actual cost LRV = AQ(AP-SP)
-P1,080 = 675(AP-P10.40) -P1,080 = 675AP - P7,020 675AP = P7,020 - 1,080 675AP = P5,940 P5,940/675
5,940.00 =
P8.80
Case 3 2 hours
Standard hours allowed = 480 / 240 = 2 hours Actual hours worked LRV = AQ(AP-SP)
AQ[(4,560/AQ) - SP] P228 = AQ(P4,560 / AQ) - P9.50 P228 = AQ4,560 / AQ - P9.50 P228 = P4,560 - P9.50 AQ P228 - P4,560 = P9.50AQ 4,332.00
5,940.00 =
P8.80
= P9.50AQ
AQ
456.00
Labor efficiency variance LEV = SP (AQ - SQ) P9.50(456 - 480)
P9.50 x -24
(228.00)
P228 F
Case 4 Standard hours per unit 4,500 / 1,500 = 3 hours Actual labor rate = P26,812.5 / 4,875 hours 5.50 per hour
3 hours
Standard hours allowed LEV = SP(AQ-SQ) P2,250 = P6(4,875 - SQ) P2,250 = P29,250 - P6SQ - P27,000 = -P6SQ SQ Labor rate variance
P27,000 / P 6
LRV = AQ(AP - SP)
4,500 hours
4,500.00 4,875(P5.50 - P6.00)
4,875 x P.50
2,437.50
6.6 actual
physical units
results at
flexible
sales
(static)
actual
budgets
flexible
activity
master
prices
variances
budget
variances
budget
80,000.00
72,000.00
sales 806,400.00 less variable costs 496,000.00 equals contribution margine 310,400.00 less fixed costs 200,000.00 equals operating income 110,400.00
6,400.00 f 16,000.00 u (9,600.00) 8,000.00 u (17,600.00)
1 sales activity variance on physical units
800,000.00 480,000.00 320,000.00 192,000.00 128,000.00
8,000.00 f 48,000.00 u (40,000.00) (40,000.00) f
720,000.00 432,000.00 288,000.00 192,000.00 96,000.00
8,000.00
80,000- 72,000 =
2 flexible budget in sales
P720,000 / 72,000 = P10. per unit P10 x 80,000
800,000.00
3 Actual sales
P800,000 + P6,400 favorable variance
806,400.00
4 contribution margin at actual
P806,400- 496,000
310,400.00
5 Actual fixed costs
P192,000 + 8,000 unfavorable variance
200,000.00
6 Operating income 7 variable costs at budget
P310,400-200,000 as per No. 2
110,400.00
P480,000 / 800,000 = .60; P720,000 x .60
432,000.00
Sales were 8,000 units higher than originally budgeted. This higher sales volume should have been produced an operating income of P128,000 (up from P96,000 by P80,000 (1-.6) = P32,000). However, only P110,400 was achieved. Sales prices were higher by P6,400, but costs exceeded the flexible budget by P16,000 + P8,000 = P24,000
Actual operating income
110,400.00
Variances: Sales prices
favorable
6,400.00
sales volume
favorable
32,000.00
variable costs
unfavorable
(16,000.00)
unfavorable
(8,000.00)
fixed costs Master budgeted operating income
14,400.00 96,000.00
f
6.7 1 P3.00
The variable overhead rate is P.60, obtained by dividing P27,000 by 45,000 hrs P27,000 / 45,000
P.60 / dl rate P.20 =
3.00
2 50,250 hrs
Actual costs, P140,700 / (P3 - P.20) = 50,250 hrs
3 P10,050 f
50,250 actual hors x P.20 = P10,050
4 P145,650
Usage variance was P5,100 unfavorable. Therefore, excess hours must have been P5,100 / P3.00 = 1,700 hours Standard hours allowed must be 50,250 - 1,700 = 48,550 Flexible budget = 48,550 x P3.00 = P145,650
5 P470 u
Flexible budget = 48,550 x P.60 = P29,130 Total Variance = P30,750 - P29,130 = P1,620 u Rate variance = P1,620 - P1,150 = Efficiency variance of P470 unfavorable
6.8 A
B
C
D
E
( ) = FAV; UNF
direct materias
flexible budget based on actual costs incurred
flexible budget
standard inputs allowed for
total
actual inputs x actual
(A - C)
actual inputs at budgeted
(C - E)
actual outputs achieved x
variance ( B + D)
prices
PV
prices
QV
budgeted prices
3400 lbs x P.90 =
3400lbs x P1.00 =
3,060.00
direct labor
(340.00)
5500hrs x P3.80 = 20,900.00
Variable overhead
6.9
3,400.00
400.00
5500hrs x P4.00 = (1,100.00)
5500 hrs x P.8636 = 4,749.80
3400lbs x P1.00 =
22,000.00
5000 hrs x P4.00 = 2,000.00
5500 hrs x P.80 = 349.80
4,400.00
60.00
3,000.00
900.00
20,000.00 5000 hrs x P.80 =
400.00
749.80
4,000.00
A
B
C
D
initial
allowance
required
unit
standard
mix
for reduction
quantity ( a / b)
cost
material costs (c x d)
NYT
24 KG
0.80
30.00
1.50
45.00
SYNX MYX
19.2 LTR 10 KG
0.80 1.00
24.00 10.00
2.10 2.80
50.40 28.00
Standard material cost -- 10 liter container 123.40 instead of being divided by the .8, the first two items could be multiplied by 1.25 to obtaine the same.
6.10 a
DMQV = (AQ x SP) - (SQ x SP) = ( 63,000 x P6) - (62,000 x P6) =
b
Total DLV = (AH x AR) - SH x SR) =
(46,000 x P16.50) - (46,500 x P16) =
15,000.00
c
Total DLQV = (AH x SR) - (SH x SR) =
(46,000 x P16) - (46,500 x P16) =
(8,000.00) fav
d
DMPV = (AQ x AP) - (AQ x SP) =
(63,000 x P5.60) - (63,000 x P6) =
(25,200.00) fav
e
Total Overhead Variance = Actual overhead - Applied overhead Actual overhead = P155,000 + P205,000 = Applied overhead = 46,500 x P8.00 = Total overhead variance
6,000.00 Unfav Unfav
360,000.00 372,000.00 (12,000.00) fav
6.11 1 Standard Quantity allowed 2 Standard direct labor hours allowed
1,200 / 3 yards 1,200 x 2 hours
400.00 yards 2,400.00 hours
3 Material price variance AQ = SQ + (MQV / SP) 400 yards + (P594 unf / P8) 400 + 74.25 AQ = 4 Labor efficiency variance SP x (AQ - SQ) P7.00 x [2,520 hours - (1,200 x 2 hours)] P7.00 x (2,520 hours - 2,400 hours)
=
474.25 yards
840.00
5 Standard prime cost to produce one box Direct materials 1/3 sq yard per box at P8.00 per yard Direct labor 2 hours at P7.00 per hour Total 6 Actual cost to produce one box Dire...