BM2021
Name: RENION, GABRIELA M. Date: Score
QUIZ
Instructions: Read and analyze the following problems. Provide what is asked for each item. Take
note that some items may require you to derive a formula. (5 items x 10 points)
1. XYZ Corporation budgets factory overhead cost of P500,000 for the coming year. Compute for
the overhead cost applied to the job. The following data are available:
Budgeted annual overhead for planned production P500,000
Budgeted annual direct labor hours 35,000
Actual direct labor hours applied to the job 400 hours
Estimated Annual Factory Overhead
Predetermined Overhead Rate=
Estimated Total Amount of Cost Driver
P 500,000
Predetermined Overhead Rate=
35,000
Predetermined Overhead Rate=14.28571∨14.29 per direct labor hour
Actual direct labor hours applied to the job 400
Multiply by per direct labor hour 14.28 or 14.29
Total the overhead cost applied to the job P 5,714.286 or P 5,716.00
Work-in-Process Inventory P 5,716
Factory Overhead P 5,716
2. LLC Service Inc. provides professional consultancy services to third-party firms. Professional
staff are paid P150 per hour, and their time is billed at P500 per hour. The firm estimates the
following total costs for the coming year:
Estimated cost of professional staff P3,000,000 (20,000 hours of staff time)
Estimated other costs (overhead) 4,000,000
Total estimated costs P7,000,000
ABC Corp. became a new client of the firm with job requirements of 100 hours of professional
staff time. Present in a tabular format the total billing for the job.
Estimated total overhead P 4,000,000
= =P 200 per hour
Estimated total hours 20,000
100 hours for the ABC Corp . job× P 200 per hour=P 20,000
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BM2021
Name: RENION, GABRIELA M. Date: Score
Total billing for professional staff P 50,000
(P 500 per hour × 100)
Total overhead applied to the job P 20,000
(P 200 per hour × 100)
Total billing for the ABC Corp. job P 70,000
3. Compute for the total cost of the job in the previous item and the total profit which will be
generated by LLC Service Inc. from performing the services requested by ABC Corp.
Total billing for professional staff P 15,000
(P 150 per hour × 100)
Total overhead applied to the job P 20,000
(P 200 per hour × 100)
Total cost for the ABC Corp. job P 35,000
Total billing for the ABC Corp. job P 70,000
Total cost for the ABC Corp. job P 35,000
Total Profit P 35,000
4. Water Pipe Manufacturing completes job #727 on January 10. The job used 45 direct labor
hours and 40 machine hours. The job consumed P3,200 worth of materials. The average direct
labor rate is P70 per hour, and the company uses the predetermined overhead rate of 8.50 per
direct labor hour. Compute for the direct labor, applied overhead, and total cost of job #727.
Direct labor per hour rate P 70
Direct labor hour used 45
Direct Labor Cost Job #727 P 3,150
Predetermined overhead rate P 8.50
Machine hour used 40
Applied Overhead Cost Job #727 P 340
Direct Material Consumed P 3,200
Direct Labor Cost 3,150
Applied Overhead Cost 340
Total Cost of Job #727 P 6,690
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BM2021
Name: RENION, GABRIELA M. Date: Score
5. The owner of Big Burger Restaurant wants to determine the unit cost associated with their
10,000 sales of burgers for January 201A.
The variable expenses per burger: The fixed expenses are as follows:
Burger patty P5.50 Labor P5,500
Bread 2.00 Rent 2,500
Ketchup 0.50 Insurance 500
Lettuce 6.00 Advertising 2,000
Mayonnaise 0.50 Utilities 4,800
Total variable cost P14.50 Total fixed cost P15,300
Total Fixed Cost P 15,300
Add: Total Variable Cost 14.50
Total P 15,314.50
Divided by: Production Units 10,000
Fixed Cost per Unit 1.53145
Total Unit Cost 16.03145
Month Production Variabl Fixed Cost per unit Total
Units e Cost Unit Cost
per unit
January 10,000 P 14.50 P 15,300/10,000 = P 16.03
P 1.53
Rubric for grading:
CRITERIA POINTS
Complete solution with correct answer 10
Last two (2) major steps of the solution are incorrect 7
Half of the solution is correct 5
First two (2) major steps of the solution are correct 3
First major step of the solution is correct 1
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