MAS First Pre-Board Examinations (Batch 37 * May 2019 batch) <= _ ANSWERS and SOLUTIONS/CLARIFICATIONS to selected items at) Tee] ec yar pa 27 sa ase a a 4 [A [2915 S{ A [301 Het 8 [31 [eB Ts6 2 A 32 B 57 3 |p Tas {8 _ [se [9 {es [34{—a—Ts0 10[ > [35D [60 a1 papas | Bo fen 12 A [37 ¢ 62 a3] A_| 38] Aes 14 | c[39| A Toa 15/87 [40] B l6s|_ 16 |B [a1 {0 [65| az {a faz [cfr 18 B 43 Db 68 | 19 —c [4s] 8 [69] 20 A 45 D 70 21 Cc 46 Ca 220 B \47) aD 23 c fas} 24] A [49| A 25/6 [501A 2, 10,000 (SP - 65) - 80,000 = 20% (300,000) 4. Standard quantity: 12,000 x 2 = 24,000 Standard price: 60,000 + 24,000°= P 2.50 Actual price: 105,000 + 35,000 = P 3,00 Materials quantity variance (Actual quantity - 24,000) 2.5 = 2,500 U . Materials p 25,000 (3 - 2.5) = P 12,500 U 7. Given excess capacity, minimum price = variable costs incurred for internal transfer, excluding any costs on external sales. 9. First equation: 420 = 3a + 60b Second equation: 8,800 = 60.a + 1,400 b = variable cost = P 2 per unit @ 10 units: 2x 10 = P20 12. Cost of make: 15 + 10 + 2 + 25% (4) = 28 Loss (buy); 5,000 (30 - 28) 14, CMR: 100% - (2% - 259% - 10%) = 639% Sales: 104,720 + (63% - 20%) = P 243,535. Unit sales: 243,535 = 45 16. 30,000 + 4 (7,000) 17. Prod (10,000) > Sales (7,000), Ay > vy ‘Ay = A Inventory x unit FFOH, ‘4y = (10,000 = 7,000) 7 = P 23,000 48, 10,000 (8 + 9 + 3) « 70,000 20.As there is only one available company has no other recourse but the standard to reflect the higher materials. 22, Production: 19,000 + 3,000 ~ 4,000 = Purchases: (18,000 x 8) + 53,000 124. Meturn on investment: (4M ~ 2.144 M) + (560,000 ‘+ 720,000) 25. Required Income: 12% * 24 28. Allocation. based on Product Mi (priority): 31,000 + (6,500 x 2) + (6,000 x 3) tt = (6,500 x 5) + (6,000 x 5.7) ‘AFOH (Fixed): 540,000 BAAH (Fixed): 100,000 (5) 32, Monopolistic competition usually involves many Sellers of heterogeneous products, 33. Weighted Average Unit CM 0% (20 ~ 12) + 40% (35 - 24.5) 24, Over-ail BEP: 45,000 + 9 =5,000 BEP (product Fighter): 40% (5,000) 36. May purchases: 100,000 + 35,000 ~ 20,000 = 115,000 May cash payments: {60% (115,000) + 40% (90,000) 39. Department B's segment margin: ‘50,000 - 42,000 ~ 6,400 (70%) 41, Since the performance of Household Appliance: division is based on Rol, it would have no incentive of undertaking the project with Rol of 414% that is lower than its present RoI of 16% == albeit acceptable. 42.A mixed cost neither has a constant total Dept. A: 72,000 + 64,000 = 1.125 per peso Dept. B: 75,000 + 10,000 = 7.50 per hour Job Bie..105 partment A: 30 + 36 + 36 (1.125) = 106.50 Department 8: 45 + 25 +15 (7.5) = 182.50 Unit cost of Job No. 105: 289 + 30 units Department A: 74,000 (1.125) = 83, Department B: 9,000 (7.50) = 67,500 Applied FOH: 150,750 AFOH: 149,000 46. Unit VC: (2,150 - 1,450) + (75 - 40) = 20 Fixed costs: 1,450 - 20 (40) 49. CM ~ FC = pre-tax profit 22,000 units (25 - 13.75) - (135,000 + x) = (60,000 = 0.6) LRV: (22,000 + 10) x (10 - 12) 53. EPS is used for company-wide (not divisional) performance measure, : ‘54, Gain: 30,000 (30 ~ 20) ~ 10% (2.7 M)