The Review Sr OOI Of Accountancy

04 F ebru ary r›RST PREBOARD ?XAMI

018
: oo na - 11:00 AM

INSTRUCTI
tuei ONS
Correons o Select the Correct answer for each of the following
R diR
Naik ° ly
g one Answer tor each item by shading the box
R
SRICTL NO E; letter Of your choice on the answer sheet provided.
BS UR F, s ##LGWhD.
Use per:cil no. 2 only.

Set B
'’ As n e Väridbl e
the coeffici 1 n Citdgqg, onother variable decreases. The value of
ent a. Of correlation (r)is most likely:
+98%
b. -98%
c. +l.01
d. -1.01

2. CVP d Ralysis requires that coat to be categorized as

a. Fixed or variable
b. Product or period
C. Budgeted or stanaard
d. Discretionary or co fitted

3. EU, Inc. reported the following results from the sale of 24,000 units
of EURONS:
Sales P 528,000
Variable manufacturing costs 288,000
Fixed manufacturing costs 120,000
Variable selling costs 52,800
Fixed acLministrative costs 35,200
Jonlee Company has offered to purchase 3,000 EURONS at P 16 each. EU
has available capacity, and the lady president is in favor of
accepting the order. She feels it would be profitable because no
variable selling costs will be incurred. The plant manager is
opposed because the 'futl cost" of production is P 17.

Which of the following correctiy noten the change in income if the

s peci al order i s accepLeci ?
a. 3, 00 0 de cr e aoe
b. P 3, 000 i nc rea s e
C . P 12, 0 o 0 de c re as e
d. P 12, 00c0 i n r ea Se

4. This refers to dvoiding

that of competitors by compèriti on in making a product distinct from
are wil1i n g t o pay adding value or features for which consumers
more.
ä. Kaizen
b. Confronta tiO&
c. Differentiation
d. Cost leadership

5.
Labor effiCiency variance, whether material or immaterial, is always
closed to:
a. Raw materials
b. Finished goods
c. Work in process
d. Cost s of goods ,rold ..
 MANAGEMENT ADVISORY SERVICES
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Items 6 to 11 are based on the following information

Spain Company
Income Statement
Foc the Month endcd January 31, 2018
Sales (P 10 per unit) P 90 0, 0 00
Less: Vdriable Costs:
Variable Cost of Goods hold:
Beginning Inventory P 125,000
Variable Cost of Goods 4O0,OO0
Manufactured Goods available for P 525,000
Sale {75,
Less: Ending Inventory OOO) P
Variable Cost of ccods Sold 450,000
Variable Selling Expense 90,000 (540,000)
Contribution Margin: P 360,000
Less: Fixed Costs:
Manufacturing P 240,000
Selling and 90,000
330,000)
Administrative Profit P 30.000
During July 2018, 80,000 units were manufactured. Variable production
COsts have remained constant on a per unit basis over the past several
months.

6. The income statement presentation is based on

a. Full costing
b. Direct costing
c. Absorption costing
d. Throughput costing
7. The peso value of the company’s
inventory on January 31 under the
absorption costing method would be:
a. e 120,ooo
b. P 90,000
c. P 75,000
d. P 60,000
8. Under absorption costing,
a. Nil amount the company Jou1d report for the month
b. P 30,000 profit
c. P 30,000 loss
d. P 60,OO0 profit

9. Spain Companyrg total costs at the break-eveh point would be

a . P 900 000
b. P 825,000
c. P 495,000
d. P 412,500

10. If sales grow by 4% next month, by how many percent is the Spain’s
profit expected to increase?
a. 4%
b. 12%
c. 48%
d. Some other percentage

11. Spain Corporation s margin of safCty iS

a. 7,500 units

c. P 750,000
d. Some other amount
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12. The perfo su rer:i:». t 3
dCt i **ce yr I em s houId e ncon ra qe each mana qe r to
niea
a. " ° E a 8lne that
esr t he. mana qer' ° units
b. M‹a k profits as high as possible
I nc re a ses
h i s /her performance
8ha r in g reward in the form of profit
Moot
pol itic e ly sp norts the company mission and competitive
Ot rateg; e
d. Red ucing the
r, e eJ for informational elements in support
the manager’ of
planning function
s
T OllO ing budget informdt)
13. cn is provided for France Company:
Quartc 1 2 s
Production in Uni ts 23, 00 4,000 21,000
EdCh finished unit requires
three pounds of material. The inventory
material at the end of each guarter should equal 10% of the
follOwing quarter’s
production needs. How many pounds of material

d. 71,100 pounds
b. 72, 000 pounds
C. 7 4, 400 pounds
d. 7fi, 000. pounds

14. In comparing financial and management accounting information, which

of the following more accurately describes management acrounting
information?
a. Historical, precise, useful
b. Required, estimated, internal
c. Budgeted, informative, adaptable
d. Comparable, verif4ab]e, monetary

15.A company provided the following information about its handling cost
vis-â-vis the miles traveled by its delivery truck (assuming the
first quarter data are all within normal limits and relevant range):
Miles traveled Handling cost
January 20,000 P 30,000
February 20,00O P 36,000
March 25,000 P 40,000
Which cost segregation method tends to ignore the month of March for
its cost analysis?
a. High-low points method
b. Scatter diagram method
c. Least-squares regression method
d. All of these methods will use March data for cost analysis

16. the Shoe Department at the Hungary Department Store is being

considered for closure. The following information relates to shoe
activity:
sales re«enue P 350, 0 00
.Variable :osts:
Cost of goods 280,000
sold
Sales commissions 30,000
Fixed opcrating costs 90,000
If 70% of the
fixed operating costs are avoidable, should the Shoe
Department be closed?
a. Yes, Hungary would be berter off by P 23,000
b. Yes, Hungary would| be better off by P 50,000
 ci No, Hunqa r y won I d be wo r se o 2? by P 13 , 000
d. No, Hung a ry wou Id De wors e oEf by P 4 0, 0 OO
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17.A company’s break-even, point is affected by the:
a. Increase in the sales volume
b. Increase in the income tax rate
c. Decrease in the income tax rate
d. Decrease in the monthly rental of factory

18.S1ovakia, Inc. has a standard variaöle overhead rate of P 5 per

machine hour, with each completed unit expected to take three machine
hours to produce. A’review of the company's accounting records found
the following:
Actual production: 19,500 units
Vd riable-overhead efficiency variance: P 9,000 U
Va riable-overhead spending variance: P 21,000 F
What was olovakia's actual variable overhtad during the period?
a. P 262,500
b. P 280,500
c. P 304,500
d. P 322,500

11.Which of the following is likely to effect the supply (rather than

the demand) of a particular good?
a. Average household income has decreased
b. Population growth rate has increased
c. Cost of raw materials has increased
d. Consumer preference has changed

20. Czech Company typically pays 40% of its purchases on account in the
month of purchase and 60% in the month following the purchase.
Purchases on Account Cash Purchases
February 2018 io,ooo s,ooo
March 2018 15,000 20,000
April 2018 4,000 8,000
Given the direct material projections, what would be the expected
c as h pa yTnen rs
for Ma rch 2018 ?
a. P 35,000
b. P 32„00O
c. P 30,000
d. P 20,OOO

21. Irrelevant costs generally exclude

a. Sunk costs
b. Avoidable costs
c. Allocated costs
d. Historical costs

22. The cost accountants at the

costs and direct labor Austria Company regressed total overhead
hours following renults: for the past 3U-months and reported the
S lope
I neerc epC P 41.27
P 596.36
Corre1a t ion coefficient û.934
C P 9,
w> t la the estimat ed 230 overhead COSt 1Ê 225
expected to be used p 8, 617 the upcoming period?
in peso)
g, p 10, 53 4
b. P 9, 882
direct labor hours are (Rounded to the nearest
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ageme n t CMO
i TI a S *lshts to corroborate the made
due dilig
q¿City. e conclusion CCt OUC ued
Oue
zon e Which for a certain client based in
this? following statements correctly describes
d. One of
e ’v idencq supports tht audit conclusion
the ev idences su;q›ort the audit
b. One of
conclusion
the pieces of ev*dence support the audit conclusion
C. One of p eCCS 0f evidence supports the audit conclusion
the
d One o I the
?4. T he Na ch i ni nq 2t
€ d[tiewt of Germany Company has a total capacity of
4 00 ma chi nc ho urs p
- r mon t h . the company has th re e di f be rent
produ«tz that
it produces. Use the following information to
determi ne the
income. produCt aix that will produce the highest operating
Machine Hours Contribution Nargin Current Unit
Per Urit per Unit Sales Demand
Superior 2 P 6.00 1,000
Deluxe P 6.06 1,500
S t a nda rd 0.5 P 2.50 2,000

Determine the best product uix or combination:

a. Produce 1,000 urits of Superior, 800 units of Standard, and 0
unit ’of Deluxe
b. Produce 500 units of Superior, 750 units of Deluxe, and 1,300
units of Standard
c. Produce 1,500 units of Deluxe, 450 units of Superior, and 0
unit of Standard
d. Product 2,000 un ta of Standard, 1,400 units of Deluxe, and 0
unit of Superior

25. When the number of units manufactured increases, the most significant
change in unit cost will be reflected as a(n)
a. Increase in the fixed element
b. Decrease in the mixed element
o. Increase in the variable element
d. Decrease in’the variable element

26. You obtain the following information regarding fixed production costs
from a manufacturing firm for fiscal year 2018:
Fixed costs in the beginning inventory P 20,000
Fixed conts incurred this period 100,000
Determine thc FALSE sratement.
a. The firm will deduct no more than P 20,000 for fixed
productio n costs under variable costing.
b. The maximum amount of fixed production costs that this firm
could deduct using absnrptior rosts in 2018 is P lQ0,000.
C. The maximum Oi lercnce between this firm’s 20ld inrome based
on absorption costing snd its income based on variable
costing is P 20,000.
If the firm produced substantially more units than it sold in
2018, Variable costing will most probably yield a lower
income than absorption costing.

27. Budgets are esseñtial management tools for planning and

controlling.
Determine the most accuz.Jte statement regarding budgets.
a. All organizations are required to budget.
b. All organizations kave the same set of budgets.
c. Budgets should never be used to evaluate performanc onCs
e.
d. Budget* are a quantitative expression goals and
objectives.
of an organizati
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28.A favorable fixed overhead volume variance occurs ii
a. Production is less than planned
b. Production is greater than planned
c. There is a favorable labor rate variance
d. There is a favorable iabor efficiency -variance

29. Poland Corporation has the following sales mix for its three
products: A, 20%; B, 35%; and C, 45%. Fixed costs total P 400,000
and the weighted-average contribution margin is P 100. How many
units of product A must be sold to break-even?
a. 800
L. 4„ooo
c. 20,oo0
d. None of these choices

30. Absorption costing differs from variable costing in all of the

following, EXCEPT
a. Arrangement of the income statement
b. Acceptabili ty for external reporting
c. Treatment of variable production costs
d. Treatment of fixed manufacturing overhead

31. Consider thé following information:

Direct material purchased and used (in pounds) 80,000 lbs.
Standard quantity of direct material allowed 76,000 lbs.
ACtual cost of direct materials purchased and used P 176,000
Unfavorable direct-material quantity variance P
9,400
What is the direct-material price variance?
a. P 11,400 favorable
b. P 11,400 unfavorable
c- P 12,000 favorable
d. P 12,000 unfavorable

32. Which kind of conts could be eliminated by closing a sales office?

(A) Direct (B) Discretionary (C) Committed
a. (A} Yes (B) Yes (C) No
b. (A) Yes (B) No (C) Yes
c. (A) Yes (B) No (C) No
ct . (A) No ( B) Nc (C) Yes

33. As the economy becomes more and more depressed, a company's

management decides to slaah spending on research and development.
Based on this, profit is expected to be
a. higher this period and higher in future periods
b. higher this period and lower in future periods
c. lower this period and higher in future periods
d. lower this period and lower in future periods

34. What does “BPR” stand for in total quality management efforts by
companies?
d . Business purchase reengineering
b. Busi ness product reengineering
c. Business process reen gineering
d. Business process reinventi on

Sib i * p y c c n ters may be evaluated on the

31.Which of tht billowing r e SeP "
bools of residual i n COm ?
a. Investment center
b. R e venue center
C, profit center
d. Cost center
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36. Tot a l Co st 5
are 70,000
amount , when 10,000 units are produced, of this
variab C OSts P 4B,oOo. hhat are the total costs when
12,000
le are
unit s are produced?
a. P 57,600
b. -P
l20,00o
C’ P
129,600
d. P 144,000 the market structure where there are many sellers to
37. How ‹j° you
call only one
buyer?
a. Monopoly
b. TOnop so ny
C. Oligopo 4
y
d. y R opolistiC compet i t-on

38. Greece ii going to sel3 ad-Acc disks for P 40 a box; one box in
consider ed to be one uni:. Tht disks cost Greece P 10 a unit. She
is planning to rent a bcoth at the upcoming City Computer Show. the
has three options for dttendang the show:
Option l: paying a fixed fee of P 3,000
Option 2: payirg a P 1,000 fee plus 109 of her revenue made at the
show, or.
Option 3:’paying 25% of her revenue made at the convention.

What would be the §ndifferencc point between option 1 dnd option 2?

a. 500 units
b. 400 units
c. 300 units
d. .200 units
39. As a rule, a company could never incur a loss that exceeds its total
a. Conts
b. Fixed costs
c. Variable costs
d . Cont r ibut ion ma r yi n

4’0.Romania Company produces 2,000 parts each year that are used in onc
of its products. The unit :ost of producing this part is
Variable cost P 7.50
Fixed cost 6.00
Total cost P l3.50

The part can be purchased from an outside supplier at P 10 per unit.

If the part is purchased from the outside supplier, one-third of the
fi cos t s i ncur r ed i n prodiic 1
liq x ed the parts can be eliminated. The
effect on operatin g income from. :nak ing the part would be a
a . P 1, 000 der re as e
b . P 1, 000 i nc re a5e
c. P 3,000 decrease
d. P 3,000 increase
4 1 . I n microeconomics, market shortage comes from (A) and results in (B)
a. (A) (g)
(B) c. (A)
b. (A}
 ( Price floor set above the equilibrium price
) Decrease in price i1: the short run
d. (A) Price ceiling set above the equilibrium priCC
( B) I nc rea s e in pr i ce in t'ie short run
Pr i ce 11oor se I be low the equ i l ib r ium price
Dec:rease in price in the long run
price
Price ceiling set below the equilibria
Increase in price in the long rUn
 "- ?4ANAGEt•tENT ADVISORY SERVICES
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42.A firm presently has total sales of P 1,000,000. If its sales rise,
its
a. Fixed costs will also rise
b. Unit variable costs will also rise
c. Profit under variable costing will go up more than its profit
under absorption costing
d. Profit under absorption costing will go uP more than its
profit under variable costing

43. Depreciation on the production equipment would appear in which of the

following budgets?
a. Cash budget
b. Production budget
c. Manufacturing overhead budget
d. Selling and administrative expense budget
44. The following are taken from Croatia Company’s income statement:
profit, P 30,000, fixed costs, P 90,000; sales, P 400,000, and
contribution margin ratio, 30 percent.

What is the company’s margin of safety ratio?

a. %0 percent
b. 40 percent
c. 33 percent
d. 25 percent
45. Organizational budgets typically reflect
a. Wealth maximization strategies
b. Organizational cash flows
c. Strategic plans
d. Tactical plans

46. If sales and expenses both rise by P 100,000

a. Asset turnover will decrease
b. Residual income will increase
c. Return on investment will increase
d. Return on investment will be unchanged

47. When cost relationships are linear, total variable prime costs will
vary in proportion to changes in
a. Production volume
b. Direct labor hours
c. Total material cost
d. Total overhead cost
48. Product A has a contribution margin of P 10 per unit, a contribution
mar gi n ratio of 50£, and requires 4 machine-hours to produce.
Product B has a contribution margin of P 12 per unit, a
contribution
margin ratio of 40%, and requires 5 machine-hours to produce. If the
constraint is machine hours, the company should produce and sell:
a. Product A sinoc it has the higher contribution margin ratio
b. Product B since it has the higher contribution marqin per unit
c. Product B since it has the higher unit selling price
d. Product A since it has the higher contribution margin per hour
49. When used for performance
evaluation, periodic internal reports based
a responsibil ity accoun ting system should NOT
on a. ed fi xeci over he act .
Include allocat organizat i on chart.
b. se r ela t ed t o the

C.
h Distinguis betwee n and noncontrollable costs.
controllable
 and budgeted controllable
d. Includ e between actua
variances l
costs
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50.T margi ø¿ S y e
n
he t Ÿ Łi 1d
a. operat Ïie n eqa t i ve i I :
es
b. Present fi at a vod umb-ì that is below break-even point
costs were less than its contribution margin
C. xed
De gree of
op
d. Varia erating levera ge is greater than 100
ble CO5tS exceeded fLxed costs
policy of maintaining an inventory of finished
51. lf a
good# dt a specified
budgeted production I **Centsge of the next month's budgeted sales,
January when for January wiìl exceed budgeted sales for
budgeted exceed budgeted January sales
a. February sales
b. /r R m ary sales exceed budgeted December sales
#. January sales exceed budgeted February sales
d. Decembe r exceed budgeted January sales
baies

52. Bulgari a Company manufactures amd cells native handbags to assorted

prints. Data for the previous year were as follows:
selling prìce per piece P 8.00
, Variatle COgt Ref piCre P 2.00
NurmÓ e o £ he nder a r; s rro b e a keven 2 5, 000
Net post-tax incore P 5,850

For the cominØ year, the company estimates that the selling price
will be P 9.50 per piece, variable cost to manufacture will increase
by 25%, and’ fixed costs will increase by 20%. Income tax rate of 35a
will not .change.
The sales volume to maintain the same income as last year should be
a. 26,000 units
b. 27,000 units
c. 28,333 units
d. 29,666 units
53. Which of the following amo‹3nts is (are) needed in computing materials
quantity variąnce?
a. Actual quantity purchased
b. standard price
c. Actual price
d. AU of the choices are noeded to compute materials usaqe
variance

54. The financial plan for calendar year 2019 of shows cost9 of goods sold
of P 265,000. The following information is also available:
Merchandise inventory, 1/1/2019 P 15,000
accounts payable for inventory, î/1/2019 P 42,000
accounts payable for inventory, 12/31/2019 P 21,000
Merchandise inventory, 12/3l/20ì9 P 35,000

q w muc h is the cash payments to be budgeted for inventory?

a. P 306,000
b. P 269,000
c. P 264,000
d. P 224,000

55. For a particular product in high demand, a company expected to

increase:
sales price and increases the sales commission. These a. .sales
 volume
b. Product contriöution margin
decreases the
c. Total variable cost per unit efforts are
d. Total selling expenses for the product NOWT
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56. In evaLuating the performance

9hould be evaluates on of a profit center manager, he/she
’a. All revenues and costs under his/her control.
b. The Variable costs and the revenues of the unit.
C. The same costs and revenues on which the unit is evaluated.
d. All revenues and costs that can be traced directly to
the unit.

##.*heu graphed , a typic al tOtal variable cost appears as

a. A vertical linc
b. A horizonta l line
C. A diagonal line that slopes downward to the left
d. fl diagon dl line that slopes downward to the right

58. RuaSia COmpany presents the following information pertaining to its

Moscow Division:
• Return on invcstnent: 25%
’ Residual îucome: P 20,000
If Russia sets the minimum OUI at 20ᵉ, then Moscow’s operating assets
must be:
a. P loC,000
b. P 200;00Ô
c. P 400,000
d. The,amount cannot be determined frcm the given information

59. Multiple regression analysis is characterized by having a

a. Single dependent variable
b. Single independent variables
c. Multiple dependent variables
d. Multiple slopes and Y-intercepts

60. Bosnia anticipated that 84,000 process hours would be worked during
an upcoming accounting period when, in fact, 92,000 process hours
were actually worked. One of the company’s cost functions is
expressed as follows:

Y - P 16 PM + P 640,000, where PH is defined as process hours

What budgeted peso amOunt would appear

flexible budget for the preceding cost in Bosnia’s statiC budget and
Static ’ Flexible function?
a. P 1,984,000 P 1,984,000
b. P 1,984,000 2,l12,OOO
P 1,984,000
c. P 2,112,000
§. P 2,112,000 P 2,112,000

61. Which of the

followi ng would produce the largest increase in the
con margin per unit?
tribution
a. A 5% i ncreas e in s lling price

b. A 1#• i £1c r e as e i Il V a r iable

c. A 15s cost fixed
g. A 20% COSt the units söld
number of
i ncome dce5
changes, then
s not change as its volume
firm’ net nO f ixed cO StS
a . The f just have
°* 5 ¿ be equal to zero
b. vice industry
be in the ser
*a l es r iC9

c. ih€ firm mu t variable costs

d. ¿e g pr ice
 Page 11 •
I tems
63 toO 6 are bdged on the foi lowing information '
ha ve recently q raduat,d from a university and have acceptcd a
PO S i tio n Bd lkans Company, the manufacturer of a popular consqmer
with
product.
favorably Duri n g your first week on :he job, the vice president has

heen impresscd with your work. She han been sc impressed,

in fact,
tha t yesterday she cailed you i• to her office and asked you to attend the
executive C
Ogxqittee meeting tns morning for the purpose of leading a
d SC
on the variancen rcported for last period. Anxious to
ussion impress tre executive committee, you took ’the variances and
fdV orab ly
S upporti nq
data home last night to study.
Op your way to work this morning, the papers were la ying on the seat of
your new, red convertiöle rar. As you were czossing a bridge on the
highway, a Sudden gust of wi-d < |.t :he pdpers and hlew them over the
edge of the bridge and into the stream below. You managed to retrieve
only one page, which contains thc following information:
St‹anciai-(? C’ost Summary
Direct materials, :runds at P 3 P 18.00
, nirect labor, 0.8 hours at r G 4.00
Variable overhral, 0.8 hours at P 3 2.40
Fixed overhead, 0.3 hours at P 7 5.60
P 30.00
V A R I A N C E S R E P O R T E D
Standard Prico G& Spending Quantity or
Cost* Rate or Budget Efficiency Volume
Direct materials P 405 0t0 P ,900 r P 9,000 U
Direct labor 90,000 1,850 U 7,000 U
Va r 1 all e o ve rh ead i› 4, 000 P 1, 30 0 F ?'
F i xed ove rh e ad 12 6, 0G 0 500 F P 14,000 U
* Applied to Work in process durïng the period
rigure oblïterated.
You recall that manufacturing overhead cont is applied to production on
the basis of direct labor-h.urs and that all of the materials purchased
duri nq the per i md tie re useci r ne t. ion. . S ince the company uw en II T to
control work flows, wor * *" r."ocess inventories are in significant and
can be ignored.

It is now 8:30 A.M. The executive committee meeting starts in just

one hour; you realize that to avoid'looking like a bungling fool you
mu st somehow generate the news.scary “backup” data for the variances
before the meeting begins. Without backup data it will be impossible to
lead the discussion or answer any questions.
63.How many pounds of direct materials were purchased and used in the
produc ti on of 22, 500 air:i * .;?
a. 138, 000 pounds
b . 137, 300 pourds
c. 135, 000 pounds
d. 132, 000 pounds

64 . that wds the a ct uaï ces t we r pound o f mat eri al?

a. P 2 . 95
b. P 3 . 00
c. P 3. 05
d. P 3.10

65. How many actual direct 'labor hours were worked during the
period? a. 19,400
b. 18, 9”/0
 .c. 18,000
d. 16, 600
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66. How much actual variable manufacturing overhead cost was incurred
during the period?
a. P sS, 300
b. P 56, 900
c. P 56, 200
d. P S9, soo

67. What is the total

flexible budget? fixed manufacturing overhead cost in the company’s
a: P 112,500
b. P 125,500
C. P 139,500
d. P 140,000
68, What were the denominator hours for last period?
. 18,000 hours
b. 20,000 hours
C. 22,000 hours
d. 25f000 hours

69. Which of the following would likely be a cost driver for the amount
of direct materials used?
a. ’The number of units sold
b. The number of units produced
c. The number of machine hours worked
d. The number of direct labor hours worked

70.Montenegro began business at the start of the current year. The

company planned to produce 25,000 units, and actual production
conformed to expectations. Sales totaled 22,000 units at P 30 each.
Costs incurred were:

Fixed manufacturing overhead P 1 S0, 000

Fixed selling and administrative cost 100,000
variable manufacturing cost per unit 8
Variable selling and administrative cost per unit 2

rf there were no variances, how much was the company's absorption

costing
income? a.
P
190,000
b.’ P 202,000
c. P 208,000
d. P 220,000
END of EXAMINATION -
 :. j oLuTio•s e oard Xdi n ationn ss Batch a 2018 batch
O/\/S to selected items
2O. f4arch Payments:
20,000 + 15,000 (40°A) 10,000 (60"/»)
22. Y = 596.36 + 41.27 (225)
23. The plural forTTi of ’evidence’ can normally be
expressed as *tons of evidence,’ ‘pieces of
evidence,’ or other similar expressions; there is
no such a word as ’evidences.’
Superior: 6 :-- 2 - P 3
Deluxe: S + 1 = P 5
* Standard: 2. s + 0.5 - p s
OptiOn 1: 2,000 standards, 1,4O0 deluxe
Option 2: 1,500 deluxe, 1,800 standards
25. When unit production increases, the mixed or
total cost per unit decreases.
29. Breakeven point for product A:
_16 (400,000 + 100) x 20°/a = 8O0 units
41 31. NQV: 9,400 U = t80,000 - 76,0OLI) SP
42 SP -- P 2.35
68 MPV: 8O,OOO (2.2 - 2.35) - P 12,000 F
19 U8 36. Y = 72,000 + 4.8 (12,000) = P 129,600
44 69 38. 3,000 - 1,000 + 10°/« (40) X
20 40. Plake: 7.50 + 6 (1/3) = P 9. SO
21” Buy: P 10.00
22 44. Breakeven: 90,000 + 30°/» = P 300,000
23 0 MatginofSafety (MS): 4OO,OOO - 300,000
MS ratio: 10O,o0O + 4Oo,o0o
24 48. CI’t oer machine hour
Product A: P 10 4 = P 2.50
Product B: P 12 + 5 - P 2.40
1. The coeMcient of correlation (r) range: 52. Fixed cost (last year): 2S,000 (8 - 2}
-- 1.0 (- 1Oo%) to + 1.o t+1oo•z ›. unit •aies: t1so,ooo (1.2 + (s,sso + o.ssjj -
3. Unit variable manutactt›ring costs: t9.50 -- 2.00 (1.25)]
288,000 + 24,000 = P 12.00 , 54. Purchases: 265,000 + 35,000 - 1S,0OO
Profit: {16 - 1Z) 3,000 = P 22,O0O Payments: 285,600 + A2,O00 - 21,000
7. Variable produce cost: 450,000 :-- 90,000 = 58. ‘2O,OO0 = (2S°/o - 20°/o) operating assets
P S per unit 60. Static: 640,000 + 16 (84,000)
Flxed product cost: 240,000 :-- 80,000 - Flexible: 640,000 + 16 (92,000)
P 3 per unit 63. ›1qV: 9,000 U • [AQ - 22,500(6)] 3
Absorption product cost: 5 + 3 - P 8 per unit I' PV: 6,900 F = 138,000 tAP - 3)
Ending units: 75,000 + 5 - 15,000 units 65. LEV: 7,000 U = [AH - 22,500(0.8)] 5
Cost of ending unit: 15,000 units x P 8 66. Variable Spending: AFOH (V) - BAAH (V}
P 120,000 1,300 F = AFOH (V) - 19,400 (3)
8. P t8O,O0O› < fi' (90, ): « Y 67. Fixed Volume: BASH (F) - SHSR (F}
Ay = A Inv x FFOH/u 14,000 U = BASH t/) - [22,500(0.8}} (7)
(9o,oo0 - 80,000} 3 = P 30,000 68. Budgeted (Denominator) Hours:
Y -- *Y - y - 30,000 - 30,000 70. t40,000 + 7 = 20,000 hours
q. CNR: 360,000 + 900,000 = 40^/c Product cost: (150,000/25,000) + B - 14
Break-even: 330,000 -I- 40% = P 825,000 Gross profit: 22,000 (30 - 14) = 352,000
@ BEP: Sales = Costs = P 825,000 Operating expenses: 100,000 + 2 (22,000)
10. DOL = CN :- profit = 360,000 -'- 30,000 -- 12x Absorpt1on income: 352,000 - 144,000
â profit --- A sales x DOL - 4^/a (12x) = 484/6
Margin of safety - Sales - Breakeven sales = MAS Quiz 3
90,0Oo - 82,500 = 7,500 units Dalv: within last week of February (earliest)
13. End. Inventory: 10% (21,000 x 3) = 6,300 Coverage: MAS - 07, 08, 09 & E (Macro)
Be9. Inventory: 10% (24;000 X 3) = 7,200 NOTE: mixtuTe of theories and problems
Purchases: (24,000 x 3) + 6,300 - 7,200
15. The *high-low“ method of segregatin 9 variable MAS Quiz 4
and fixed costs will consider the highest Date. within 2“ week of March (earliest)
(February) and lowest (January) points
based on the cost driver or activity (miles Coverage: MAS - 10, 1 I & 12
traveled). NOTE: all problems, no theories
Segment Hargin: %
350,000 - 280,000 - 30,000 - 70°6 (90,000)
18. VFOH Variance: Variable Spending Variance MAS Quiz S
+ Variable EffiUency variance - P 12,000 F Date: within 3’d week of March(earliest)
SFOH (V): 19,500 (3) x 5 = P 292,500 Cover‹ige. all topics! (MAS - 1 to 12, A
tO F) NOTE. all theories, no problems @