A recent fire devastated the records of RIKIMARU INC. In relation to its direct labor for the current year, the following data were gathered: Actual production Standard hours per unit 4,000 units 3 Rate variance 500 F Efficiency variance Standard direct labor cost per unit 2,000 UF P15 How many hours were used by the company for the current year in producing the 4,000 units? . 12,800 hrs. d. Cannot be computed; limited information a. 11,600 hrs. b. 12,400 hrs.

Principles of Accounting Volume 2
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...
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A recent fire devastated the records of RIKIMARU INC. In relation to its direct
labor for the current year, the following data were gathered:
Actual production
Standard hours per unit
4,000 units
3
Rate variance
500 F
Efficiency variance
Standard direct labor cost per unit
2,000 UF
P15
How many hours were used by the company for the current year in producing
the 4,000 units?
c. 12,800 hrs.
d. Cannot be computed; limited information
a.
11,600 hrs.
b.
12,400 hrs.
Transcribed Image Text:A recent fire devastated the records of RIKIMARU INC. In relation to its direct labor for the current year, the following data were gathered: Actual production Standard hours per unit 4,000 units 3 Rate variance 500 F Efficiency variance Standard direct labor cost per unit 2,000 UF P15 How many hours were used by the company for the current year in producing the 4,000 units? c. 12,800 hrs. d. Cannot be computed; limited information a. 11,600 hrs. b. 12,400 hrs.
PUGNA CORP. is a company specializing in manufacturing and selling
customized and specialized neck pillows. The selling price of each pillow is
P750 per unit. On its first month of operations, 3,500 units were produced
where 2,500 units were sold. Actual fixed costs are the same as budgeted
fixed costs. The company is using a denominator level of activity of 4,000
units. Information on its costs was as follows:
Variable costs:
Direct materials
500,000
Direct labor
600,000
300,000
200,000
90,000
Manufacturing overhead
Selling costs
Administrative costs
Fixed costs:
50,000
250,000
400,000
Selling costs
Administrative costs
Manufacturing overhead
.If the company is using variable costing, how much is cost of goods sold and
volume variance, respectively?
P1,000,000; 50,000 F
b.
C. P1,000,000; 50,000 UF
d. None; None
а.
P1,000,000; None
3. If the company is using absorption costing, how much is net income or (loss)
for the first month of operations?
P 85,000
b.
P 35,000
с.
а.
(P10,000)
d.
(P15,000)
Transcribed Image Text:PUGNA CORP. is a company specializing in manufacturing and selling customized and specialized neck pillows. The selling price of each pillow is P750 per unit. On its first month of operations, 3,500 units were produced where 2,500 units were sold. Actual fixed costs are the same as budgeted fixed costs. The company is using a denominator level of activity of 4,000 units. Information on its costs was as follows: Variable costs: Direct materials 500,000 Direct labor 600,000 300,000 200,000 90,000 Manufacturing overhead Selling costs Administrative costs Fixed costs: 50,000 250,000 400,000 Selling costs Administrative costs Manufacturing overhead .If the company is using variable costing, how much is cost of goods sold and volume variance, respectively? P1,000,000; 50,000 F b. C. P1,000,000; 50,000 UF d. None; None а. P1,000,000; None 3. If the company is using absorption costing, how much is net income or (loss) for the first month of operations? P 85,000 b. P 35,000 с. а. (P10,000) d. (P15,000)
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ISBN:
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OpenStax
Publisher:
OpenStax College