Question

56.

            Yamato Company's 2019 fixed manufacturing overhead costs totaled Php120,000 and variable selling costs totaled P45,000.

Under absorption costing, how much of the costs are period costs?

Group of answer choices

None

Php120,000

Php165,000

Php45,000

62. C2 Company had sales of Php576,000 and variable costs of Php324,000. Fixed costs amount to Php96,000 from an expected production of 7,200 units.

If the company expects to increase its sales by 960 units by incurring an additional Php24,000 for advertising expense, what will happen to profit?

Group of answer choices

Increase of Php33,600

Decrease of Php33,600

Decrease of Php9,600

Increase of Php9,600

Question 63 2 pts

A company sells two products, A and B. The sales mix consists of a composite unit of 2 units of A for every 5 units of Y (2:5) Fixed costs are Php247,500. The unit contribution margins for A and B are, Php12.50 and Php6.00, respectively.

Considering the company as a whole, the number of composite units to breakeven is

Group of answer choices

22,500 composite units

4,500 composite units

8,250 composite units

1,650 composite units

Question 64   2 pts

ABC Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Direct materials	Php153,000
Direct labor	110,500
Variable manufacturing overhead	204,000
Fixed manufacturing overhead	255,000

Sales were Php780,000 for the year, variable selling and administrative expenses were Php88,400, and fixed selling and administrative expenses were Php170,000. There was no beginning inventory. Assume that direct labor is a variable cost.

The contribution margin per unit was:

Group of answer choices

Php25.70

Php32.50

Php27.30

Php17.50

Answer 1

Question 56:

Answer: Php45,000

Explanation:

Under absorption costing, fixed manufacturing overhead costs are considered as product cost to the extent of cost of goods sold and variable selling costs are considered as period cost.

Question 62:

Answer: Increase of Php9,600

Calculation:

Contribution margin per unit = (Php576,000 - Php324,000) / 7,200 Units = Php 35 per unit

Particulars	$
Increase in contribution (960 Units * Php35 per unit)	33,600
Less: Advertisement expenses	24,000
Increase in profit	9,600

Question 63:

Answer: 4,500 composite units

Calculation:

Number of composite margin to breakeven = Fixed cost / Composite contribution margin

Composite contribution = (Php12.50 * 2) + (Php6.00 * 5) = Php55

Fixed cost = Php247,500

Number of composite margin to breakeven = Php247,500 / Php55 = 4,500 composite units

Question 64:

Answer: Php25.70

Calculation:

Particulars	$
Selling price per unit (Php780,000 / 13,000 Units)	60.00
Less: Variable cost per unit
Direct materials per unit (Php153,000 / 17,000 Units)	9.00
Direct labor per unit (Php110,500 / 17,000 Units)	6.50
Variable manufacturing overhead per unit (Php204,000 / 17,000 Units)	12.00
Variable selling and administrative expenses per unit (Php88,400 / 13,000 Units)	6.80
Total variable cost per unit	34.30
Contribution Margin per unit	25.70

All the best...