1. SALITA Processors, Inc. provides computer processing services, and relevant data set up by the firm's

management are shown below:

No. of pages per hour, 20.

No. of hours per month, 500.

Variable costs per hour, P30.

Fixed costs per month, P10,000.

For the month of May, 2000, 12,000 pages are generated in 450 hours. The actual variable costs totaled P13,200,

while the actual fixed costs equaled the estimated amount. The total standard cost for May was:

a. P25,000

b. P27,500

c. P30,000

d. P31,500

2. For the period just ended, LAMBANA Co. budgeted its variable overhead at P40 per direct labor hour and fixed

overhead at P480,000. Budgeted production volume was 8,000 units and the production time, which was the basis

for allocation of variable and fixed overhead, was budgeted at .80 hour per unit. The actual results for the period

were: fixed overhead, P552,000; variable overhead, P283,480; units produced, 7,460; direct labor hours used,

5,595. What was the budgeted variable overhead for the actual volume attained?

a. P223,800

b. P226,784

c. P238,720

d. P283,480

3. ALASKADO Co.'s operations for the month just ended originally set up a 60,000 direct labor hour level, with

budgeted direct labor of P960,000 and budgeted variable overhead of P240,000. The actual results revealed that

direct labor incurred amounted to P1,148,000 and that the unfavorable overhead variance was P40,000. Labor

trouble caused an unfavorable labor efficiency variance of P120,000, and new employees hired at higher rates

resulted in an actual average wage rate which was higher by P0.40 than the standard average wage rate per hour.

The total number of standard direct labor hours allowed for the actual units produced is:

a. P52,500

b. P60,000

c. P62,500

d. P70,000

4. Operational statistics generated for the period just ended for API Co., maker of a line of furniture, follow:

Standards per set:

Materials 2.0 yards @ P100

Labor .5 hour @ P200

Actual results:

Production 20,000 sets

Materials used 37,000 yards

Price per yard P102.00

Direct labor hours used 9,000 hours

Direct labor cost P1,764,000

The direct labor rate variance was:

a. P36,000 favorable

b. P36,000 unfavorable

c. P40,000 favorable

d. P40,000 unfavorable