SHOW PROPER SOLUTIONS.

Problem 2: Alejandro Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance costs and machine hours (the selected cost driver) for the past six months are as follows: Maintenance Costs Machine Hours January P155,000 1,800 February P107.200 1.230 March P151,000 1,740 April P158.400 2,190 May P148,000 1.602 June P106,000 1,590 Required: Using the high-low method, compute the: a) Variable cost per hour. b) Total fixed costsProblem 3: Kimberly Reyes, controller for Max Enterprises, has decided to estimate the fixed and variable components associated with the company's shipping activity. She has collected the following data for the past six months: Total Shipping Costs Packages Shipped P800 10 P1.100 20 P950 15 P860 12 P1,040 18 P1,250 25 Required: a) Using the high-low method, determine the fixed and variable components for the shipping costs. b) Using the cost formula, predict the total cost of shipping if 23 packages are shipped. c) Using the least-squares method, compute the variable cost per package shipped and the amount of the total fixed cost. (You can use the alternative equations below for this requirement, since the equations in our learning materials are not clear. The same answers anyway will be arrived at using both sets of equations.) Least-Squares method alternative equations: b = n( Oxy) - OxDy nOx' - (Ox) b = n(Ov) - OxDy nOx - (Ox) a = Dy - box Notes: 1) Prepare 1 column each for Shipping costs and Number of shipped packages and write below the amount of shipping costs and the number of shipped packages. Then solve for: a) Ox (sum of x) (x = number of shipped packages) b) Dy (sum of y) (y = shipping cost) c) Ox' d) OxDy 2) Take note that Ox' is not the same as (Ox) 3) Use your answers in no. 1 above in the formula.Problem 4: Tomas Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost information follows. Product no. 65 Product no. 66 Annual fixed costs P220,000 P340,000 Variable costs per unit P33 P25 Regardless of which product is introduced, the anticipated selling price will be P50 and the company will pay a 10% sales commission on gross sales. Tomas will not carry an inventory on these items. Required: a) Which of the two products will be more profitable at a sales level of 25,000 units? b) At what unit-volume (production in units) level will the profit/loss on product no. 65 equal the profit/loss on product no. 66