1. a.) Usingthe Variable Costing, the company's operating would be (round off into ones.)

Cruz Corp. produces and sells a single product in 2021, its first year of operations, planned and actual production was 30,000 units. It sold 65% of these production levels at P50 each.

Data were as follows.

Variable Manufacturing Costs P100,000

Fixed Manufacturing Cost P 95,000

Variable Non-Manufacturing Costs P90,000

Fixed Non-Manufacturing Costs P85,000

Answer:

1. b.) Using the same given above, use the Absorption Costing.

Answer:

2. a.) The budgeted COGS is (Round off into ones)

Cruz Corp. has the following budget estimate.

Sales P3,000,000

Income before tax 10% of sales

Selling & Administrative 20% of sales

Conversion Cost (DL & FOH) 50% of the total manufacturing cost

Inventions are budgeted as follows:

Materials, beg P110,000

Work-in-process, beg P120,000

Finished Goods, beg P130,000

Materials, end P80,000

Work-in-process, end P70,000

Finished Goods, end P60,000

Answer:

2. b.) Using the given above, the budgeted purchases of raw materials is (Round off into ones)

Answer:

3. a.) Least Squares Method: Variable Production Cost per Unit or VCU is (Round off into ones.) Please note that LSM could be equal or not to the value calculated under High-Low Method depending on correlationof the given data.

Period Maintenance Costs Machine Hours

January P55,000 5,000

February P31,000 2,000

March P79,000 8,000

Answer:

3. b.) If Cruz Company uses the high low method of analysis, the average MONTHLY fixed maintenance costs amounts to (Round off into ones.)

Cruz Company is preparing a flexible budget for next month and requires a breakdown of the company's factory maintenance cost into the fixed and variable elements.

Period Maintenance Costs Machine Hours

January P55,000 5,000

February P31,000 2,000

March P79,000 8,000

Answer: