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    BIANCA SOPHIA CABALUNA
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    Relevant Costing_Cabrera

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    9 views10 pages

    Relevant Costing - Cabrera

    Uploaded by

    BIANCA SOPHIA CABALUNA

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 10
    a ee paler re pret = ae ee a came = a x Dianna cat Red an ey eed ot emilee in) aa ‘ate ‘oe PART B. Multinle Choice Review Questions and Problems MAKE OR BLY Which ofthe flowing pes consi aimys relevant a devsion? a Sinkeost, Incremental costs. - Average cos. 4. Fed oss 4. emai es forth fice pce, Anower: C 3. cremenl cast cn be defined 4 Const arenpectd increase regardless ofthe course fat owen, Theirs between cpt ngured under altemative cousesot 4-62 ‘e.Costincued in the pas, Costs that are imelevain decision making awe B opportunity costs: fae reated a period cos ude varie cong, 1. have already been ineuredas result pas ations. am be nd by fling nor & donee ieativ courses ofan, answer: C ‘Sunk costs Answer: A ‘considered. between ems relevant ass ina doin problem? a Only Only % Oat 4 Oniytand mt fied costs exceed its contribution marin, fixed costs pls is allocated corporate cox exceed margin. ‘Which oft above statements give an economic reson for eliminating he division? 2 Oniyt Onl BOnlyit 6 Oniytandt Answer B 9, Dow Consicton Company nad none offce fr its Midland Towers Dow an rect house talr fr this purpose aerate ‘of PLO per month wi minimum reat period of 18 months or 8a x 080 + PI,000). Thus, i te 2,200 P100) the on-site ofc sow 4-64 Answer: C porting Analysis/Compuaton: Spr a buy of PLI.00 les cost fo mae of P1460 {P30 dret abor overhead of 3.6) 200% x 8 elon dat copy tins 1 anh Pat MR rom an oases ata the monty ge at which wl be 32,000 units. SupertingAnt/Computatin: dno: A conf 308 [015000 x 0813000 pe varibe con of P11 4 mim Se lipo ge 171 re ete wll mini iby (2) dower: ie ing 4.800 unis of B12 and mang he remining mine by sting the stations al eachother and soying satin 1000 ois of BIR and mfr 8.000 eis of ‘Sato! : ing 4,000 units of 818 and ranting he rensining Tallon data cppy fo itens 13 rough 1. Machin hors reuited per unt Sndard cost pe uit Diet materia Dirt sor Maufacting overhead Lee gl ose bearing 0 thal the comp (oaximize its ne beef) ACCEPT OR REJECT A SPECIAL ORDER ig whether OF Nt 10 ae aap tthe ore wil have 0 he company’s regu lume ad anys Esa sg labor costs of producing the order Answer: B fixed fcior overhead that will continue even i the special offers not acepted Answer D 19. Given the following age sling rice fora unit of produc: 4 Based on 25,000 units producd ech yet. ring Analysis/Computation: Sunnerty ecmateriae Information is for question 2 2: Company is considering the adtion ofa new made fn. the 27, Wthe F-27 model is added as a new product ‘entribution margin of other produc lines at Flin 4-69 20. 1 he F-27 role i abd net er, th HINES 26g, be chard forthe pn for Flint to add the Pss.75. 1 P4800, Supporting AnatyssiCompustion 20) Answers oc F.21 Segment margin (P58 ~ P3030» 400 (Conran margin les on othr product Increase at income Answer: A ‘Avotdabie dec fied cost per wit Conran margin of exer product les (P7, 000/000) Saling price per it ectie fans. Each fin regulary sels for P&2. ‘The er fan is based ona al opacity of 150,000 fan produced each sil £25000 fs Minima soll price Sunflower has an oppor machines. Gross cust CONTINUE OPERATIONS oR SHUTDOWN ng a oo ee 7 conn a ne of Valor Company that shouldbe shut down due o fie jonal cst is (ar) South and West. East b. Eastand West. 4 Answer: D ‘Supporting Amalysis/Computation: The North and South divisions show a profit after the allocation and shoul xt be shut down. The allocation percentage for headquarters. is 213% (P1,540,000/P6,600,000). Bast shoul be shut down as shown below: ‘spLL-AS IS OR PROCESS FURTHER SEE a el or process further dion cnier ie ting ost Suporing AnalysisCompurion: (26) Answer: B ‘Segment margin 27 Answer: D Increse in conribution margin of P3600 [P120.000 x 0.10 x 0.30 (one ‘margin rat) ess promotional ext fP 5.00 (P60,000 12) results a mod pris, ean the ae fo ae which ton cic boss (lake) which oa of x00 uc MIX - alice COMpAHY poles 1500 pl of Pt A ad ope asc rm es vd oe 4 ees of ier pant nt tient Daa Peg s,o00 As,000 ©. 20000 advantage ‘To maximize Wallace Company's manufacturing cotton mari, he 4 PROOD disadvantege ‘variable cost of farther processing that shold be incared © . < rosom “A, Assumetht Tel dcdestoupgdete castors, At wat seis Pernt wosd the compay bras wel ofan un sl the ea, bist Gamo (CMA) Eth pesen conden? Anovers 2 < ts i ro aber 34 Holl Compmy rates rr ih tna Shown below Sapporig Asi Compt: dct Z 7 t 2) owes B ice per uit BAT TOOK “PHT “PIE conperimt 1k Is gat eae tion margin perunt B12 “ale BS “254 ED “AM pate 0000-1900 Pango A Singers “i200 ‘Aparicular machin is a botleeck. On tht mtn 3 machine hors ange eam cr enied Prd A | hw eid 1 produce each tous aeeed tops ech 0 dnowers Thief Produ ii rode is pode? Sango GAB. Tl at of rg h xe Tate © BGA. Dra ob of oars ender of proditon oot ma Sain oe 4.76 acm PRICING Situational The fling data apply 0 items 37 and 38. Ferley Company incurs the following costs in producing and sli of prodit¥ each ear sSom ai, the company uses the contribution approach to csi, pri iresa markup of 75 percent. Te target selling price wad be 2 PISS. ® &. Pi400, _Suppring AnatssComputaion: G1) Answer: B Varibls ovraad Pa Fed overheod oa Teta! 70 : 0% Tar sling price et G8) Answers D Verb over P7 ible selling cost | Toul rs x 134 Tags sling price els 4-78 Sauer Company produces snd 29 The company’ ie sels 25,000 its of product X ech yer. ‘The company Incr the flowing eco he 000 el Direct materialsP16 Te, or tlo, wich cong lt, na

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