CPAR

CPA REVIEW SCHOOL OF THE PHILIPPINES

Manila
MANAGEMENT ADVISORY SERVICES Friday, February 17, 2023
First Pre-board Examination 8:00 am to11:00 am
Set A

Instructions: Choose the BEST answer for each of the following items. Mark only
one answer for each item on the Special Answer Sheet provided. Strictly no erasure
allowed. Use Pencil No. 1 only.

1. A company incurs annual fixed costs of ₱250,000 in producing its product. Estimated unit
sales for 2023 are 125,000. An after-tax income of ₱75,000 is desired by management. The
company projects its income tax rate at 25 percent. What is the maximum amount that the
company can expend for variable costs per unit and still meet its profit objective if the sales
price per unit is estimated at ₱6?
a. ₱3.20 c. ₱3.40
b. ₱1.60 d. ₱3.70

2. Which of the following is a not a characteristic of management accounting?

a. Internal focus c. Subjective information may be used
b. Broad-based and multidisciplinary d. Historical orientation

ITEMS 3 AND 4 ARE BASED ON THE FOLLOWING:

ABC and Co. is a large, local accounting firm located in Cebu. Miss B, one of the Firm’s
founders, appreciates the success her firm has enjoyed and wants to give something back
to her community. She believes that an inexpensive accounting services clinic could provide
basic accounting services for small businesses located in the province. She wants to price
the services at cost.

Since the clinic is brand new, it has no experience to go on. Miss B decided to operate the
clinic for two months before determining how much to charge per hour on an ongoing basis.
As a temporary measure, the clinic adopted an hourly charge of ₱50, half the amount
charged by ABC and Co. for professional services.

The accounting services clinic opened on January 1. During January, the clinic had 120
hours of professional service. During February, the activity was 150 hours. Costs for these
two levels of activity usage are as follows:

Professional hours 120 hours 150 hours

Salaries:
Senior accountant ₱2,500 ₱2,500
Office assistant 1,200 1,200
Internet and software subscriptions 700 850
Consulting by senior partner 1,200 1,500
Depreciation (equipment) 2,400 2,400
Supplies 905 1,100
Administration 500 500
Rent (offices) 2,000 2,000
Utilities 332 365

3. The clinic’s monthly fixed costs amount to:

a. ₱8,600 c. ₱ 425
b. ₱9,025 d. ₱12,189
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4. Mr. A, the chief paraprofessional of the clinic, has estimated that the clinic will average 130
professional hours per month. If the clinic is to be operated as a nonprofit organization, how
much will it need to charge per professional hour?
a. ₱97.81 c. ₱82.77
b. ₱87.06 d. ₱92.02

5. Historical experience, engineering studies, and input from operating personnel are three
potential sources for quantitative standards. Although historical experience may provide an
initial guideline for setting standards, it should be used with caution because
a. most companies have very poor records.
b. ideal standards are better than historical standards.
c. they may not be achievable by operating personnel.
d. they may perpetuate operating inefficiencies.

6. In national income terms, aggregate demand is the

a. demand for money by a community in a period of full employment.
b. total expenditure on capital goods by entrepreneurs during a period of full
employment.
c. demand that is needed if the country’s economy is to operate at optimum level and
the level of investment is to be raised.
d. total expenditures on consumer goods and investment, including government and
foreign expenditures, during a given period.

7. Which of the following statements is correct?

a. MAS is confined only to such areas as financial accounting, auditing, and tax services.
b. Because the MAS practitioner must be independent, he must not allow the client to
participate in any phase of his engagement.
c. Although MAS extends beyond the traditional accounting services, CPAs in the MS
practice are still bound by the rules of professional ethics in the practice of accounting
in general.
d. CPAs provide management services to go around the ethical constraints as mandated
by the Accountancy Act.

8. How will a favorable volume variance affect net income under each of the following
methods?
Absorption Variable
a. reduce no effect
b. reduce increase
c. increase no effect
d. increase reduce

9. Consider the equation X = Sales – [(CM/Sales) × (Sales)]. What is X?

a. net income c. contribution margin
b. fixed costs d. variable costs

10. As projected net income increases the

a. degree of operating leverage declines. c. break-even point goes down.
b. margin of safety stays constant. d. contribution margin ratio goes up.
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ITEMS 11 TO 13 ARE BASED ON THE FOLLOWING:

The following information is available for X Co. for its first year of operations:

Sales in units 5,000

Production in units 8,000
Manufacturing costs:
Direct labor ₱3 per unit
Direct material ₱5 per unit
Variable overhead ₱1 per unit
Fixed overhead ₱P100,000
Net income (absorption method) ₱30,000
Sales price per unit ₱40

11. What would X Co. have reported as its income before income taxes if it had used variable
costing?
a. ₱30,000 c. ₱67,500
b. (₱7,500) d. can’t be determined from the given
information

12. What was the total amount of SG&A expense incurred by X Co.?
a. ₱30,000 c. ₱6,000
b. ₱62,500 d. can’t be determined from the given
information

13. Based on variable costing, what would X Co. show as the value of its ending inventory?
a. ₱120,000 c. ₱27,000
b. ₱ 64,500 d. ₱24,000

14.The most likely strategy to reduce the break-even point would be

a. increase both the fixed costs and the contribution margin
b. decrease both the fixed costs and the contribution margin
c. decrease the fixed costs and increase the contribution margin
d. increase the fixed costs and decrease the contribution margin

15. Which of the following is an advantage of using variable costing?

a. Variable costing complies with Generally Accepted Accounting Principles.
b. Variable costing complies with the National Internal Revenue Code.
c. Variable costing is most relevant to long-run pricing strategies.
d. Variable costing makes cost-volume-profit relationships more easily apparent.

16. The standard direct materials cost to produce a unit of a product is four meters of materials
at ₱2.50 per meter. During June, 4,200 meters of materials costing ₱10,080 were purchased
and used to produce 1,000 units of the product. What was the materials price variance for
June?
a. ₱480 unfavorable c. ₱400 favorable
b. ₱ 80 unfavorable d. ₱420 favorable

17. A company’s total costs of operating five sales offices last year were ₱500,000, of which
₱430,000 represented variable costs. The company has determined that total costs are
significantly influenced by the number of sales offices operated. Last year’s costs and
number of sales offices can be used as the bases for predicting annual costs. What would
be the budgeted costs for the coming year if the company were to operate eight sales
offices?
a. ₱800,000 c. ₱688,000
b. ₱758,000 d. ₱ 70,000
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18. Using regression analysis, Nasty Company graphed the following relationship of its cheapest
product line’s sales with its customer’s income levels:

Sales
Pesos

Income levels increasing

If there is a strong statistical relationship between the sales and customers’ income levels,
which of the following numbers best represents the correlation coefficient for this
relationship?
a. +0.93 c. - 0.93
b. - 9.00 d. +9.00

19. In connection with a standard cost system being developed by a company, the following
information is being considered with regard to standard hours allowed for output of one unit
of product:
HOURS
Average historical performance for the past three years 3.50
Production level to satisfy average consumer demand over
a seasonal time span 3.00
Engineering estimates based on attainable performance 2.80
Engineering estimates based on ideal performance 2.30

To measure controllable production inefficiencies, what is the best basis for the company to
use in establishing standard hours allowed?
a. 2.80 c. 2.30
b. 3.00 d. 3.50

20. A company produces two products: Fat and Thin. The projected income for the coming
year, segmented by product line, follow:
Fat Thin Total
Sales ₱300,000 ₱2,500,000 ₱2,800,000
Less variable expenses 100,000 500,000 600,000
Contribution margin ₱200,000 ₱2,000,000 ₱2,200,000
Less direct fixed expenses 28,000 1,500,000 1,528,000
Product margin ₱172,000 ₱ 500,000 ₱ 672,000
Less common fixed cost 100,000
Operating income ₱ 572,000

The selling prices are ₱30 for Fat and ₱50 for Thin.

The company can increase the sales of Fat with increased advertising. The extra advertising
would cost an additional ₱245,000, and some of the potential purchasers of Thin would
switch to Fat. In total, sales of Fat would increase by 25,000 units, and sales of Thin would
decrease by 5,000 units. This strategy would
a. increase the company’s total sales by ₱750,000.
b. decrease the company’s total contribution margin by ₱300,000.
c. increase the company’s total income by ₱55,000.
d. not affect the company’s total fixed costs.

21. Which of the following standard costing variances would be least controllable by a
production supervisor?
a. material usage c. overhead volume
b. overhead efficiency d. labor efficiency
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22. A company manufactures one product with a standard direct manufacturing labor cost of
four hours at ₱12.00 per hour. During June, 1,000 units were produced using 4,100 hours
at ₱12.20 per hour. The unfavorable direct labor efficiency variance was:
a. ₱820 c. ₱1,200
b. ₱400 d. ₱1,220

23. The determination of a cost as either direct or indirect depends upon the:
a. accounting system c. cost object chosen
b. allocation system d. cost tracing system

ITEMS 24 TO 28 ARE BASED ON THE FOLLOWING:

A company evaluates manufacturing overhead in its factory by using variance analysis. The
following information applies to the month of July:

ACTUAL BUDGETED
Number of units produced 19,000 20,000
Variable overhead costs ₱4,100 ₱2 per direct labor hour
Fixed overhead costs ₱22,000 ₱20,000
Direct labor hours 2,100 0.1 hour per unit

24. The controllable variance amounts to

a. ₱2,500 unfavorable c. ₱2,300 unfavorable
b. ₱1,000 unfavorable d. ₱2,000 unfavorable

25. Using the three-way variance analysis, the spending variance amounts to
a. ₱100 favorable c. ₱2,000 unfavorable
b. ₱1,900 unfavorable d. ₱2,100 unfavorable

26. The efficiency variance amounts to

a. ₱400 unfavorable c. ₱400 favorable
b. ₱1,900 unfavorable d. ₱1,000 unfavorable

27. The non-controllable variance is

a. ₱2,300 unfavorable c. ₱2,000 unfavorable
b. ₱400 unfavorable d. ₱1,000 unfavorable

28. The fixed overhead efficiency variance is:

a. ₱400 unfavorable c. ₱400 favorable
b. ₱2,000 unfavorable d. 0

29. The primary purpose of management advisory services is

a. to achieve the objectives of the MAS firm.
b. to help the client maximize its resources.
c. to improve the client's use of its capabilities and resources to achieve the objectives of
such client's organization.
d. to help the client identify its problems.

30. A company uses a standard costing system in connection with the manufacture of a “one
size fits all” product made of rubber. Each unit of finished product contains two feet of
direct material. However, a 20% direct material spoilage calculated on input quantities
occurs during the manufacturing process. The cost of the direct material is ₱3 per foot. The
standard direct materials cost per unit of finished product is:
a. ₱7.50 c. ₱7.20
b. ₱6.00 d. ₱4.80

31. A linear cost function can represent:

a. mixed cost behaviors c. variable cost behaviors
b. fixed cost behaviors d. All of these answers are correct.
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32. A company earned contribution margin of ₱100,000 on sales of ₱1,000,000. It earned

contribution margin of ₱130,000 on sales of ₱1,100,000. The variable cost ratio as a
percentage of sales is
a. 30%. c. 70%.
b. 40%. d. 90%.

33. A company has a break-even point of 200,000 units and earns a ₱100,000 profit at sales of
250,000 units. Which of the following is true?
a. Fixed costs are ₱400,000.
b. Total contribution margin at 200,000 units is ₱100,000.
c. Profit at sales of 300,000 units is ₱120,000.
d. Selling price per unit is ₱2.

34. What factor, related to manufacturing costs, causes the difference in net earnings computed
using absorption costing and net earnings computed using variable costing?
a. Absorption costing considers all costs in the determination of net earnings, whereas
variable costing considers fixed costs to be period costs.
b. Absorption costing allocates fixed overhead costs between cost of goods sold and
inventories, and variable costing considers all fixed costs to be period costs.
c. Absorption costing “inventories” all direct costs, but variable costing considers direct
costs to be period costs.
d. Absorption costing “inventories” all fixed costs for the period in ending finished goods
inventory, but variable costing expenses all fixed costs.

35. X and Y are substitute products. If the price of product Y increases, the immediate impact
on product X is
a. Price will increase.
b. Quantity demanded will increase.
c. Quantity supplied will increase.
d. Price, quantity demanded, and supply will increase.

36. Patents are granted in order to encourage firms 10 invest in the research and development
of new products. Patents are an example of
a. Vertical integration. c. Entry barriers.
b. Market concentration. d. Collusion.

37. Which of the following expresses the relationship between risk and return?
a. Inverse relationship. c. Negative relationship.
b. Direct relationship. d. No relationship.

ITEMS 38 and 39 ARE BASED ON THE FOLLOWING:

A company plans to sell 80,000 bags of potato chips in June, and each of these bags
requires five potatoes. Pertinent data include:

Bags of potato chips Potatoes

Actual June 1 inventory 15,000 bags 27,000 potatoes
Desired June 30 inventory 18,000 bags 23,000 potatoes

38. How many bags of potato chips should the company plan to produce
a. 80,000 c. 83,000
b. 77,000 d. 80,000

39. How many units of potatoes should the company plan to purchase?
a. 381,000 c. 411,000
b. 389,000 d. 419,000
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40. A company manufactures fans with direct material costs of ₱10 per unit and direct labor of
₱7 per unit. A local carrier charges the company ₱5 per unit to make deliveries. Sales
commissions are paid at 10% of the selling price. Fans are sold for ₱100 each. Indirect
factory costs and administrative costs are ₱6,864 and ₱37,200 per month, respectively.

How many fans must the company produce to break even?

a. 1,375 c. 564
b. 648 d. 530

41. A company uses a standard costing system. At the end of the current year, the company
provides the following overhead information:
Actual overhead incurred:
Variable ₱90,000
Fixed ₱62,000
Budgeted fixed overhead ₱65,000
Variable overhead rate (per direct labor hour) ₱8
Standard hours allowed for actual production 12,000
Actual labor hours used 11,000

What amount is the variable overhead efficiency variance?

a. ₱8,000 favorable. c. ₱6,000 favorable.
b. ₱8,000 unfavorable. d. ₱2,000 unfavorable.

42. A company has two sources of funds: long-term debt with a market and book value of ₱15
million issued at an interest rate of 10%, and equity capital that has a market value of ₱9
million (book value of P5 million). The company has profit centers in the following locations
with the following operating incomes, total assets, and current liabilities. The cost of equity
capital is 15%, the after-tax weighted average cost of capital is 10%, while the tax rate is
30%.
Operating Income Assets Current Liabilities
Region 1 P 815,000 P 3,750,000 P 800,000
Region 2 P1,100,000 P 5,000,000 P 1,200,000
Region 3 P2,450,000 P9,250,000 P3,180,000

What is the EVA for Region 2?

a. ₱1,108,000 c. ₱275,500
b. ₱270,000 d. ₱390,000

43. Which of the following people is LEAST likely to use management accounting information?
a. the controller
b. a shareholder evaluating a stock investment
c. the treasurer
d. an assembly department supervisor

44. Financial accounting provides the primary source of information for:

a. decision making in the finishing department
b. improving customer service
c. preparing the income statement for shareholders
d. planning next year's operating budget

45. Which of the following is false?

a. Products, services, departments, and customers may be cost objects.
b. Costs are accounted for in two basic stages: assignment followed by accumulation.
c. Actual costs and historical costs are two different terms referring to the same thing.
d. Accountants define a cost as a resource to be sacrificed to achieve a specific objective.
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46. A travel agency intends to sell to its customers a special round-trip airline ticket package. It
is able to purchase the package from the airline carrier for ₱150 each. The round-trip tickets
will be sold for ₱200 each and the airline intends to reimburse he travel agency for any
unsold ticket packages. Fixed costs include ₱5,000 in advertising costs.

For every ₱25,000 of ticket packages sold, operating income will increase by:
a. ₱6,250 c. ₱18,750
b. ₱12,500 d. an indeterminable amount

47. The balanced scorecard generally uses performance measures with four different
perspectives. Which of the following performance measures would be part of those used for
the internal business processes perspective?
a. Cycle time. c. Hours of training per employee.
b. Employee satisfaction. d. Customer retention.

48. The balanced scorecard has been adopted by many corporations. Which of the following
best describes the balanced scorecard?
a. A strategy that meets management's' objectives.
b. A diagram illustrating cause and effect relationships.
c. A table of key actions to achieve strategic objectives.
d. A strategic performance measurement and management framework.

ITEMS 49 TO 52 ARE BASED ON THE FOLLOWING:

A company’s industrial photo-finishing division, PFDIV, incurred the following costs and
expenses in 2023:
Variable Fixed
Direct materials ₱200,000
Direct labor 150,000
Factory overhead 70,000 P42,000
Selling and administrative expenses 30,000 48,000
Total ₱450,000 ₱90,000

During 2023, PFDIV produced 300,000 units of industrial photo-prints, which were sold for
₱2 each. The company’s investment in PFDIV was ₱500,000 and ₱700,000 at January 1,
2023 and December 31, 2023, respectively. The company normally imputes interest on
investments at 15% of average invested capital.

49. For the year ended December 31, 2023, PFDIV’s return on average investment was:
a. 15.0% c. 8.6%
b. 10.0% d. (5.0%)

50. For the year ended December31, 2023, PFDIV’s residual income (loss) is:
a. ₱150,000 c. ₱ (45,000)
b. ₱ 60,000 d. ₱(30,000)

51. How many industrial photo-print units did PFDIV have to sell in 2023 to break-even?
a. 180,000 c. 90,000
b. 120,000 d. 60,000

52. Based on PFDIV’s 2023 financial data, and an estimated 2013 production of 350,000 units of
industrial photo-prints, PFDIV’s estimated 2013 costs and expenses will be
a. ₱525,000 c. ₱615,000
b. ₱540,000 d. ₱630,000

53. Total production costs of prior periods for a company are listed below. Assume that the
same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000
units and that the cost driver for each cost is the number of units produced.
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Production in units per month 3,000 9,000 16,000 35,000

Cost X ₱23,700 ₱ 52,680 ₱ 86,490 ₱178,260
Cost Y ₱47,280 ₱141,840 ₱252,160 ₱551,600

What is the average cost per unit at a production level of 8,000 units for cost X?
a. ₱5.98 c. ₱7.90
b. ₱5.85 d. ₱4.83

ITEMS 54 AND 55 ARE BASED ON THE FOLLOWING INFORMATION:

The operating results in summarized form for a retail computer store for 2022 are

Revenue:
Hardware sales ₱4,800,000
Software sales 2,000,000
Maintenance contracts 1,200,000
Total revenue ₱8,000,000
Costs and expenses:
Cost of hardware sales ₱3,360,000
Cost of software sales 1,200,000
Marketing expenses 600,000
Customer maintenance costs 640,000
Administrative expenses 1,120,000
Total costs and expenses ₱6,920,000

Operating income ₱1,080,000

The computer store is in the process of formulating its operating budget for 2023 and has
made the following assumptions:

* The selling prices of hardware are expected to increase 10% but there will be no
selling price increases for software and maintenance contracts.
* Hardware unit sales are expected to increase 5% with a corresponding 5%
growth in the number of maintenance contracts; growth in unit software sales
is estimated at 8%.
* The cost of hardware and software is expected to increase 4%.
* Marketing expenses will be increased 5% in the coming year.
* Three technicians will be added to the customer maintenance operations in-the
coming year, increasing the customer maintenance costs by ₱120,000.
* Administrative costs will be held at the same level.

54. The retail computer store's budgeted total revenue for 2023 would be
a. ₱8,804,000 c. ₱8,904,000
b. ₱8,460,000 d. ₱8,964,000

55. The retail computer store's budgeted total costs and expenses for the coming year would be
a. ₱7,252,400 c. ₱7,558,960
b. ₱7,526,960 d. ₱7,893,872

56. A company had an opportunity to use its capacity to produce an extra 5,000 units with a
contribution margin of ₱5 per unit, or to rent out the space for ₱10,000. What was the
opportunity cost of using the capacity?
a. ₱35,000 c. ₱15,000
b. ₱25,000 d. ₱10,000
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57. A company has gathered the following information from a recent production run:
Standard variable overhead rate ₱10
Actual variable overhead rate ₱ 8
Standard process hours 20
Actual process hours 25

What is the company's variable overhead spending variance?

a. ₱50 unfavorable. c. ₱40 unfavorable.
b. ₱50 favorable. d. ₱40 favorable.

58. A company produces and sells two products. The first product accounts for 75% of sales
and the second product accounts for the remaining 25% of sales. The first product has a
selling price of ₱10 per unit, variable costs of ₱6 per unit, and allocated fixed costs of
₱100,000. The second product has a selling price of ₱25 per unit, variable costs of ₱13 per
unit, and allocated fixed costs of ₱212,000. At the breakeven point, what number of units of
the first product will have been sold?
a. 52,000 c. 25,000
b. 39,000 d. 14,625

59. In its first year of operations, a company had the following costs when it produced 100,000
and sold 80,000 units of its only product:

Manufacturing costs Fixed ₱180,000

Variable 160,000

Selling and admin. costs Fixed ₱ 90,000

Variable 40,000

How much lower would the company’s net income be if it used variable costing instead of
full absorption costing?
a. ₱36,000 c. ₱68,000
b. ₱54,000 d. ₱94,000

60. The management of a company has decided to implement a transfer pricing system. The
company’s MIS department is currently negotiating a transfer price for its services with the
four producing divisions of the company as well as the marketing department. Charges will
be assessed based on number of reports (assume that all reports require the same amount
of time and resources to produce). The cost to operate the MIS department at its full
capacity of 1,000 reports per year is budgeted at ₱45,000. The user subunits expect to
request 250 reports each this year. The cost of temporary labor and additional facilities used
to produce reports beyond capacity is budgeted at ₱48.00 per report. The company could
purchase the same services from an external Information Services firm for ₱70,000.

What amounts should be used as the ceiling and the floor in determining the negotiated
transfer price?
a. Floor, ₱36.00; Ceiling ₱56.00. c. Floor, ₱48.00; Ceiling ₱70.00.
b. Floor, ₱45.60; Ceiling ₱56.00. d. Floor, ₱57.00; Ceiling ₱82.00.

61. In the cost of quality, which of the following is an example of a “prevention cost”?
a. Cost of inspecting products on the production line by quality inspectors.
b. Labor cost of product designers whose task is to design components that will not
break under extreme temperature conditions.
c. Cost of reworking defective parts detected by the quality assurance group.
d. Cost of parts returned by customers.
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62. A CPA should reject an MAS engagement if

a. he audits the financial statements of a subsidiary of the prospective client.
b. the proposed engagement is not accounting related.
c. his recommendations are to be subjected to a review by the client.
d. it would require him to make management decisions for the prospective client.

63. Management accounting is considered successful when it:

a. helps creditors evaluate the company's performance
b. helps managers improve their decisions
c. is accurate
d. is relevant and reported annually

64. Cost behavior refers to:

a. how costs react to a change in the level of activity
b. whether a cost is incurred in a manufacturing, merchandising, or service company
c. classifying costs as either inventoriable or period costs
d. whether a particular expense has been ethically incurred

65. When 10,000 units are produced, fixed costs are ₱14 per unit. Therefore, when 20,000 units
are produced fixed costs will:
a. increase to ₱28 per unit c. decrease to ₱7 per unit
b. remain at ₱14 per unit d. total ₱280,000

66. Which of the following items is NOT an assumption of CVP analysis?

a. Total costs can be divided into a fixed component and a component that is variable
with respect to the level of output.
b. When graphed, total costs curve upward.
c. The unit-selling price is known and constant.
d. All revenues and costs can be added and compared without taking into account the
time value of money.

67. If breakeven point is 100 units, each unit sells for ₱30, and fixed costs are ₱1,000, then on
a graph the:
a. total revenue line and the total cost line will intersect at ₱3,000 of revenue
b. total cost line will be zero at zero units sold
c. revenue line will start at ₱1,000
d. All of these answers are correct.

68. Helping Hands is a nonprofit organization that supplies electric fans during the summer for
individuals in need. Fixed costs are ₱200,000. The fans cost ₱20.00 each. The
organization has a budgeted appropriation of ₱480,000. How many people can receive a
fan during the summer?
a. 12,000 people c. 24,000 people
b. 14,000 people d. 34,000 people

69. Absorption costing:

a. expenses marketing costs as cost of goods sold
b. treats direct manufacturing costs as a period cost
c. includes fixed manufacturing overhead as an inventoriable cost
d. is required for internal reports to managers
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70. A company has the following information for the current year:

Beginning fixed manufacturing overhead in inventory ₱95,000

Fixed manufacturing overhead in production 375,000
Ending fixed manufacturing overhead in inventory 25,000

Beginning variable manufacturing overhead in inventory ₱10,000

Variable manufacturing overhead in production 50,000
Ending variable manufacturing overhead in inventory 15,000

What is the difference between operating incomes under absorption costing and variable
costing?
a. ₱70,000 c. ₱40,000
b. ₱50,000 d. ₱5,000

The End -