UNIVERSITY OF LUZON

PEREZ BLVD. DAGUPAN CITY

COLLEGE OF ACCOUNTANCY
ACC308 REMEDIAL EXAM

NAME: ____________________________________ DATE: FEBRUARY 27, 2019

WRITE YOUR FINAL ANSWER ON THE BLANK.

1. Pieta Chemical Company manufactures a wide variety of chemical compounds and liquids for industrial uses. The
standard mix for producing a single batch of 500 gallons of one liquid is as follows:

Liquid Chemical Qty. in Gallons Cost per Gallon Total Cost

Maxan 100 P2.00 P200
Salex 300 0.75 225
Cralyn 225 1.0 225
625 P650

There is 20% loss in liquid volume during processing due to evaporation. The finished liquid is put into 10- gallon
bottles for sale. Thus, the standard materials cost for a 10-gallon bottle is P13.

A total of 4,000 bottles (40,000 gallons) were produced during November. The actual quantities and costs of the
materials placed in production during November were as follows:

Liquid Material Quantity in Gallons Total cost

Maxan 8,480 P 17,384
Salex 25,200 17,640
Cralyn 18,540 16,686

Compute the material price, mix, and yield variances, including an analysis of the portion of the mix variance
attributable to each material. _________________________, __________________________,
_________________________.

2. The flexible budget formula for total overhead for Star Division of Waterous Company is P360,000 + P8 per
direct labor hour. The combined overhead rate is P20 per direct labor hour. The following data have been
recorded for the year 2019:

Actual total overhead for 2019 P580,000

Total overhead spending variance 16,000 U
Volume variance 24,000 U

Using the three-variance approach, determine the number of standard hours allowed and actual hours of direct
labor hours worked. _______________________, ______________________.