Deryl Q.

Galve COSTCO1
BSAC02

EXERCISE 2

1. D, P 487,475
Conversion cost P 435,000 1.60
Less: Manufacturing overhead P 163,125 0.60
Direct labor P 271,875 1.00

Direct materials 215,600

Add: Direct labor 271,875
Prime cost 487,475

2. D, P 650,600
Prime cost 487,475
Add: MOH 163,125
Manufacturing cost P 650,600

3. D, 185,000

4. B, P 1,200
Variable cost per case 400
Multiply: Volume (19)
Variable cost Highest point 7,600

Cost 8,800
Less: Variable cost (7,600)
Fixed Cost per month 1,200

5. A, P 400
Volume Cost Difference in Cost 2,800
Highest month 19 8,800 divided by: diff. in volume 7
Less: Lowest month 12 6,000 variable cost per case 400
Differences 7 2,800

6. C, 31.330
Direct labor 107,690
(5,500 x 2.2 x 8.90)
Add: Direct Materials P 64,625
Prime cost 172,315
Divided by no of chairs produced 5,500
Prime cost per unit 31.330
7. D, 31.81
Direct labor 107,690
Add: FOH 67,306.25
Divided by no. of chairs 5,500___
Conversion cost per unit P31.81

8. B

9. B, P5.00
(154,000 + 26,000)
12,000
Contribution margin per unit P15.00

Variable cost per unit P20.00

Less: P15.00
Variable cost per unit P5.00

10. A, P0.33
(P69,000 – P52,000) P17,000
(P148,000 – P97,000) P51,000

Variable cost per peso sales P0.33

11. B, P28,400
MOH 84,400
Less: 56,000
(16 x 3,500)
Total Fixed Cost P28,400

12. A, P16.00
(84,400 – 46,000)
(3,500 – 1,100)
Variable cost per unit: P16

13. A, P7.00
DM 62,500
Add: DL 25,000
Less: FOH 162,500
Divided by no. of units 10,000
Prime cost per unit P 7.00

14. C, P18.75
DL 25,000
Add: FOH 162,500
Divided by no of units 10,000
Conversion cost per unit P 18.75
15. B, 25.00
DM 62,500
DL 25,000
FOH 162,500
250,000 25.00

16. C, P13.75
No of units produced 10,000
Multiply: Price 38.75
Revenue 387,500
Less: COGS (250,000)
Gross profit 138,500
Divided by Units produced _10,000
Gross profit per unit 13.75

17. C
No. of units 10,000
Multiply: Price 38.75_
Revenue 387,500
Less: COGS (250,000)
Less: Selling expense (50,000)
Less: Admin expense (45,000)
Operating Income 42,500

18. C, P35.00
Direct labor 16.00
FOH 19.00

19. D, P60.00
Direct materials 25
Direct labor 16
FOH 19
Cost sold per unit P60

20. D, P35.00
Total units 1,000
Multiply: Sold price 95.00
95,000
Less: (DM, DL, FOH) (60,000)
35,000
Divided by _1,000_
Net profit per unit P35.00

21. A, 90,000
Direct Material 3/01/22 P36,000
Add: Direct Mat. Purchased P84,000
Less: Direct Materials 3/31/22 P30,000
Direct Material Cost P90,000
22. B, P80,000
Direct labor payroll 60,000
Divided by DL rate per hour 7.50
Multiply: FOH per DL hour 10___
Manufacturing overhead cost P80,000

23. A
24. B
25. B