A company has the following cost components for 100,000 units of product for the year: All costs are variable except for 100,000 of manufacturing overhead and 100,000 of selling and administrative expenses. The total costs to produce and sell 110,000 units for the year are:

A manufacturing company employs variable costing for internal reporting and analysis purposes. However, it converts its records to absorption costing for external reporting. The accounting department always reconciles the two operating income figures to assure that no errors have occurred in the conversion. Financial data for the year are presented below. The fixed manufacturing overhead cost per unit was based on the planned level of production of 480,000 units. The difference between the operating income calculated under the variable costing method and the operating income calculated under the absorption method would be:

A manufacturer can sell its single product for P660. Below are the cost data for the product: Direct Materials…………………………………………170 Direct Labor……………………………………………...225 Manufacturing Overhead……………………………….90 The relevant margin amount when beginning a theory of constraints (TOC) analysis is:

Tape Inc. produces chemicals used in the cleaning industry. During the previous month, it incurred P300,000 in joint costs in producing 60,000 units of IM-01 and 40,000 units PC-01. Tape Inc. uses the unit of production method to allocate joint costs. Currently, IM-01 is sold at split-off for P3.50 per unit. GMA-7 has approached Tape Inc. to purchase all the production of IM-01 after further processing which will cost Tape Inc. P90,000. Concerning IM-01, which of the following alternatives is most advantageous?

Assume that Tape Inc. agreed to sell IM-01 to GMA-7 at P5.50 per unit after further processing. During the first month of production, Tape Inc. sold 50,000 units with 10,000 units remaining in inventory at the end of the month. With respect to IM-01 which one of the following statements is true?

It’s Showtime, which is subject to 40% income tax rate, had the following operating data for the period just ended: Selling price per unit…………………………………………...60 Variable costs per unit…………………………………………22 Fixed costs………………………………………………………P504,000 Management plans to improve the quality of its sole product by: (1) replacing the component that costs P3.50 with a higher-grade unit that costs P5.50 and (2) acquiring a P180,000 packing machine. It’s Showtime will depreciate the machine over a 10-year life with no estimated salvage value by straight-line method of depreciation. If it wants to earn an after-tax income of P172,800 in the upcoming period, it must sell:

Given the following data, what is the marginal propensity to consume?

EAT Company has assembled the data appearing below pertaining to two products. Past experiences have shown that the unavoidable fixed manufacturing factory overhead included in the cost per machine hour averages P10. EAT Company has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Total machine capacity is 50,000 hours If EAT Company desires to follow an optimal strategy, it should produce:

EAT Company has assembled the data appearing below pertaining to two products. Past experiences have shown that the unavoidable fixed manufacturing factory overhead included in the cost per machine hour averages P10. EAT Company has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Total machine capacity is 50,000 hours. With all other things constant, if EAT Company can reduce the direct materials for an electric mixer to P6 per unit, the company should:

Listed below are selected line items from the Cost of Quality Work Report for What’s Up Madlang Pipol for last month: Rework……………………………………………….P725 Equipment Maintenance……………………………1,154 Product Testing……………………………………….786 Product Repair…………………………………………695 What is What’s Up Madlang Pipol total prevention and appraisal cost?

Donnie Auto Shop has developed the following production plan: January……………………………………………10,000 February……………………………………………8,000 March………………………………………………9,000 April……………………………………………….12,000 Each unit contains 3kgs of direct materials. The desired direct materials ending inventory each month is 120% of the next month’s production, plus 500 kilograms. The beginning inventory has met this requirement. Donnie Auto Shop has developed the following direct labor standards for production of these units: Donnie Auto Shop’s total budgeted direct labor cost for February usage should be:

Based on past experiences, JB Company has developed the following budget formula for estimating its shipping expenses. The company’s shipments average 12 kgs per shipment is: Shipping Costs = P16,000 + (P0.50 X kg. shipped) The planned and actual activities regarding order and shipments for the current month are given in the following schedule: The actual shipping costs for the month amounted to P21,000. The appropriate monthly budgeted allowance for shipping costs for the purpose of performance evaluation would be:

Robelyn Company has the following expected pattern of collections on credit sales: 70% collected in the month of sale; 15% in the month after the month of sale; and 14% in the second month after the month of sale. The remaining 1% is never collected. At the end of May, Robelyn Company has the following accounts receivable balances: From April sales…………………………………21,000 From May sales………………………………….48,000 Robelyn’s expected sales for the month of June are 150,000. What were the total Sales in April?

The following information are available for Nicole Company’s Alpha Division: Sales…………………………………………………………600,000 Variable Cost of Goods Sold……………………………..200,000 Fixed Manufacturing Costs………………………………..50,000 Variable Selling Expenses………………………………….30,000 Fixed Admin Costs (50% allocated)……………………….20,000 Fixed Selling Costs (50% allocated)………………………..50,000 Assets at Cost……………………………………………….800,000 Accumulated Depreciation………………………………..200,000 If Nicole Company uses ROI to evaluate division managers and uses historical cost as the investment base, the ROI for Alpha Division is:

In the two following constraint equations, X and Y represent two products (in units) produced by Yvonne Corporation: Constraint 1: 3X + 5Y < 4,200 Constraint 2: 5X + 2Y > 3,000 What is the maximum number of units of Product X that can be produced?

The projected sales price for a new product (which still is in the development stage of the product life cycle) is P50. The company has estimated the life cycle cost to be P30 and the first-year cost to be P60. On this type of product, the company requires a P12 per unit profit. What is the target cost of the new product?

Kenneth Company annually consumes 10,000 units of Part “Istopher”. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. By how much could Kenneth Company reduce its total costs if it purchased the economic order quantity instead of 500 units?

Lliena Jane has only 25,000 hours of machine time each month to manufacture its two products. Product Chris has a contribution margin of P50, and Product Topher has a contribution margin of P64. Product Chris requires 5 hours of machine time, and Product Topher requires 8 hours of machine time. If Lliena Jane wants to dedicate 80% of its machine time to product that will provide the most income, she will have a total contribution margin of:

Gabrielle Anne Company is currently operating at a loss of P15,000. The sales manager has received a special order for 5,000 units of product, which normally sells for P35 per unit. Costs associated with the product are: Direct Material……………………………………………….6 Direct Labor………………………………………………….10 Variable Overhead…………………………………………..3 Applied Fixed Overhead……………………………………4 Variable Selling Expenses…………………………………..2 The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by P1.50 and selling expenses would be decreased by P1.00. If Gabrielle Anne Company wants this special order to increase the total net income for the firm to P10,000, what sales price must be quoted for each of the 5,000 units?

Norcel Corporation signed a government construction contract providing for a formula price of actual cost plus 10%. In addition, Norcel Corporation was to receive one-half of any savings resulting from the formula price being less than the target price of P2,200,000. Norcel’s actual costs incurred were P1,920,000. How much should Norcel receive from the contract?

The following is a summarized Income Statement of Ninia Lotto’s Profit Center for March, 2023: Contribution Margin……………………………………………70,000 Period Expenses: Manager’s Salary………………………………………………..20,000 Facility Depreciation…………………………………………….8,000 Corporate Expense Allocation………………………………….5,000 Profit Center Income……………………………………………37,000 Which of the following amounts would likely be most subject to the control of the profit center’s manager?

The budget for Samuel John’s service business for the year is as follows: Direct Labor per hour………………………………………….P30 Total labor hours……………………………………………….10,000 Overhead Costs: Material Handling and Storage………………………………P10,000 Others (Rent, Utilities, Depreciation, Insurance)……………P120,000 Direct Material Costs…………………………………………...P500,000 Samuel John allocates materials handling and storage costs per peso of direct material costs. Other overhead is allocated based on total labor hours. In addition, Edwin adds a charge of P8 per labor hour to cover profit margin. Popoy Trucking Company has brought one of its trucks to Samuel John for an engine overhaul. If the overhaul requires 12 labor hours and P800 worth of parts, what price should Samuel John charge Popoy Trucking Company for the repairs?