19 the following direct manufacturing labor

19. The following direct manufacturing labor information
pertains to the manufacture of Product B.
Time required to make one unit, 2 direct labor
hours
Number of direct workers 50
Number of productive hours per week, per worker 40
Weekly wages, per worker P500
Workers’ benefits treated as direct manufacturing
labor costs 20% of wages
What is the standard direct manufacturing labor cost
per hour?
20. Lucky Company sets the following standards for the
year.
Direct labor cost [2 DLH @ P4.50] P9.00
Manufacturing overhead [2 DLH @ P7.50] P15.00
Lucky Company plans to produce its only product
equally each month. The following is the annual
budget for overhead costs:

EXCEL PROFESSIONAL SERVICES, INC.
Fixed overhead P150,000
Variable overhead 300,000
Normal activity in direct labor hours 60,000
In March, Lucky Company produced 2,450 units with
actual direct labor hours used of 5,050. Actual
overhead costs for the month amounted to P37,245
(Fixed overhead is as budgeted.)
The amount of overhead volume variance for Lucky
Company is
Page 5 of 6 MAS.3204
21. JKL Co. has total budgeted fixed costs of P75,000.
Actual production of 19,500 units resulted in a P3,000
favorable volume variance. What normal capacity was
used to determine the fixed overhead rate?
22. The following information is available from the Tyro
Company:
Actual factory O/H P15,000
Fixed O/H expenses, actual P7,200
Fixed O/H expenses, budgeted P7,000
Actual hours 3,500
Standard hours 3,800
Standard variable O/H rate per
DLH
P2.50
How much is the variable overhead rate variance?
a. P750 F c. P950 F
b. P750 U. d. P200 U
23. At Overland Company, maintenance cost is exclusively
a variable cost that varies directly with machine-hours.
The performance report for July showed that actual
maintenance costs totaled P9,800 and that the
associated spending variance was P200 unfavorable. If
8,000 machine-hours were actually worked during
July, the budgeted maintenance cost per machine-hour
was: