Department of Accountancy

College of Arts and Sciences

San Beda College
MANAGERIAL ACCOUNTING
1. The following information is available regarding the total manufacturing
overhead of Jack Mfg. Co. for a recent four-month period:
Machine
Hours
January
February
March
April

5,500
3,200
4,900
2,800

Manufact
uring
Overhead
311,500
224,000
263,800
184,600

A. Using the high-low method, compute for

a. The variable cost per machine hour
b. The fixed element of monthly overhead cost
2. Bacardi Inc. manufactures bottled drinks that it sell to retail stores. The
following is the per unit information relating to the manufacture and sale of
this product:
Unit Sales Price
Variable Cost per unit
Fixed Cost per year

P 2,800
700
2,400,000

Using the above data, determine the following:

A.
B.
C.
D.
E.

Contribution Margin Ratio

Sales volume in pesos to break-even
Sales volume in units to earn an annual operating income of P 450,000
The margin of safety sales volume if the annual sales total 4,000 units
Operating Income if annual sales total 4,000 units