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Prelims Quiz 1
Prelims Quiz 1
Product Period
costs costs
Direct materials 5,000.00 5,000.00
Indirect materials 2,000.00 2,000.00
Direct labor 6,000.00 6,000.00
Indirect labor 1,000.00 1,000.00
Factory utilities 4,000.00 4,000.00
Advertising costs 8,000.00 8,000.00
Sales commissions 12,000.00 12,000.00
Depreciation on administration building 3,000.00 3,000.00
Salaries of administrative personnel 20,000.00 20,000.00
Depreciation of delivery equipment 2,000.00 2,000.00
Overtime pay – factory workers 1,500.00 1,500.00
Rework cost on defective products 2,500.00 2,500.00
discovered during quality inspection
22,000.00 45,000.00
Direct materials P 60
Direct labor 10
Variable manufacturing overhead 18
Fixed manufacturing overhead 32
Sales commissions (2% of sales) 4
Administrative salaries 16
Total P 140
12. What are the fixed costs per unit associated with Product ABC?
A. P 102
B. P 48
C. P 52
D. P 32
13. What are the inventoriable costs per unit associated with Product ABC?
A. P 120
B. P 140
C. P 50
D. P 88
14. What are the period costs per unit associated with Product ABC?
A. P4
B. P 16
C. P 20
D. P52
Number of
Receiving and
Month Items
Handling Costs
Received
January 2,800 P 17,500
February 2,000 12,500
March 1,190 7,450
April 5,200 32,500
May 4,410 27,600
June 4,016 25,100
Receiving
Number of
and
Month Items Per unit
Handling
Received
Costs
January 2,800 17,500 6.25
February 2,000 12,500 6.25
March 1,190 7,450 6.26
April 5,200 32,500 6.25
May 4,410 27,600 6.26
June 4,016 25,100 6.25
If the company sells 8,200 units, its total contribution margin should be closest to:
A. P 301,000
B. P 311,600
C. P 319,200
D. P 66,674
How much will the sale of one additional case add to Bronco's net operating income?
A. P 250.00
B. P 100.00
C. P 150.00
D. P 12.50
Per unit
Sales (400 cases) 100,000.00 250.00
Variable expenses 60,000.00 150.00
Contribution margin 40,000.00 100.00
Fixed expenses 35,000.00
Net operating income 1.14
The maintenance costs and machine hours (the selected cost driver) for the past six months are as follows:
23. If Meng Company uses the high-low method of analysis, the estimated variable rate of maintenance cost per
machine hour is:
A. P7.23
B. P 8.73
C. P 5.46
D. P 5.33
24. The average annual fixed maintenance cost amounts to:
A. P 4,160
B. P 8,320
C. P 4,920
D. P 5,120
25. What is the average rate per hour at a level of 1,500 machine hours?
A. P 5.33
B. P 8.11
C. P 7.23
D. P 5.46
28. If the company used 2,000 machine hours, the estimated maintenance costs amounted to:
A. P 8,718.68
B. P 9,227.18
C. P 15,581.66
D. P 16,090.15
Sales 738,000.00
x CM ratio 12%
Contribution margin 88,560.00
Less: Fixed costs 84,000.00
Net Income 4,560.00
Actual
Sales 200,000.00
Variable costs (140,000.00)
Contribution margin 60,000.00
Fixed costs (45,000.00)
Net income 15,000.00
DOL 4.00
MOSR 25%
Actual sales 200,000.00
x 1-MOSR (100%-25%) 0.75
BE Sales 150,000.00
Contribution margin 60,000.00
Divided by: DOL 4.00
Net income 15,000.00
Contribution margin 60,000.00
Less: Net income (15,000.00)
Fixed costs 45,000.00
Net income 15,000.00
X Increase in sales 0.30
X DOL 4.00
Increase in net income 18,000.00
Add: Current net income 15,000.00
Net income after 30% increase in sales 33,000.00