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Determine if the cost is variable or fixed. Write variable cost if it is variable and fixed cost if itis fixed. In a shipbuilding company, the cost of compensating the builders of the ships Ina wine processing company, the cost of paying the cost accountant In a farmer's cooperative, the cost of paying irrigation fees Factory supplies In manufacturing pancit canton, the cost of buying rice as component of noodles Ina consignment agreement, the commission fees for every item sold Prepaid insurance SoG on Boo ho Last month, Longtail Company placed P60,000 of materials into production. The Printing Department used 8,000 labor hours at P5.60 per hour and the Binding Department used 4,600 hours at P6.00 per hour. Factory overhead is applied at a rate pf P6.00 per labor hour in Printing Department and P8.00 per labor hour in the Binding Department. Longtail's inventory accounts show the following balances: Beginning Ending Finished goods P 25,000 P 19,000 Work in Process 18,000 21,200 Materials 17,500 6,000 8. What is the cost of goods sold at normal costing? 9. What is the amount of materials purchased for the period'? 10.In a traditional job order cost system, the issuance of supplies to a production department increases a. Supplies control c. Factory overhead control b. Work in process control d. Factory overhead applied 11.The appropriate method for the disposition of underapplied or overapplied factory overhead a. Is to cost of goods sold only b. Is to finished goods inventory only c. ls apportioned to cost of goods sold and finished goods inventory d. Depends on the significance of the amount Longtail Manufacturing Inc. provided the inventory balances and cost data for the period: Inventories Jan 1 Dec 31 Direct materials P 40,000 P 50,000 Work in Process 15,000 22,000 Finished Goods 67,000 58,000 Factory overhead applied P 182,000 Cost of goods manufactured 526,000 Direct materials used 190,000 Actual factory overhead 149,000 12. How much is the under/over applied overhead for the period? 13. What is the amount of materials purchased for the period? 14. What is the total labor cost'? 15. What is the cost of goods sold at actual costing? 16. Which of the following organization would be most likely to use a job order cost system? a. The loan department of a bank b. The check clearing department of a bank c. Manufacturer of processed cheese food d. Manufacturer of video cassette tapes 17. Statement |: Fixed cost per unit remains constant as the activity level or cost driver changes. Statement Il: Total variable cost changes as the activity level or cost driver changes. Statement Ill: [Indirect costs related to manufacturing are product costs Statement IV: General and administrative costs can never included in product costs 4 statements are false 3 statements are false 2 statements are false . Only 1 statement is false aoc 18. Which of the following is true? a. Relevant costs are future costs b. Sunk costs are used in decision making c. Relevant costs are not different under two alternative courses of actions d. Opportunity costs are both accounted in management reporting and external reporting Longtail Enterprises summarizes the following total utility costs per month: Cost Driver in cubic meters Total cast January 340 14,500 February 800 20,000 March 1,000 22,500 April 400 16,000 May 300 13,000 June 650 17.200 duly 670 26,000 August 980 18,600 September 600 15,500 October 950 19,800 November 720 18,300 December 1,500 26,000 19. Using High low method, what is the variable cost per unit? 20. Using High low method, how much is the fixed cost? 21.1f Longtail uses 900 cubic meters of utility, how much shall Longtail pay? 22. Which of the following has the highest correlation? a. 14 c.3 b. 0 d. -0.89 23. Which of the following correlations is directly related? a. -1.4 6. -0.5 b. 0.09 d. 0 24. Which of the following is a committed fixed cost? a. Depreciation of building c. Research and development expense b. Advertising expense d. Postage 25. Which of the following is a discretionary fixed cost? a. Advertising expense c. Amortization of a patent b. Depreciation of a building d. Salary of a manager