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1. A companys breakeven point in pesos of revenue may be affected by equal percentage increases in both selling price and variable cost per unit.

1. A companys breakeven point in pesos of revenue may be affected by equal percentage increases in both selling price and variable cost per unit. The equal percentage changes in selling price and variable cost per unit will cause the breakeven point in pesos to

a. Decrease by less than the percentage increase in selling price

b. Decrease by more than the percentage increase in the selling price

c. Increase by the percentage change in variable cost per unit

d. Remain unchanged

2.Rio Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total activity

Assembly P613,250 55,000 Machine hrs

Processing orders P46,170 1,500 orders

Inspection P146,110 1,900 inspection hrs

Data concerning one of the companys product, Product X, appear below:

Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . P113.70

Direct materials cost per unit . . . . . . . . . . . . . . . . . . . P48.14

Direct labor cost per unit . . . . . . . . . . . . . . . . . . . . . . P11.62

Annual unit production and sales . . . . . . . . . . . . . . . . . . 360

Annual Machine hours . . . . . . . . . . . . . . . . . . . . . . . . . . 1,040

Annual orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Annual inspection hours . . . . . . . . . . . . . . . . . . . . . . . . . . 30

According to activity-based costing system, the product margin for product X is?

3.Nairobi Companys operation for the month just ended originally set up a 60,000 direct labor hour level, with budgeted direct labor of P960,000 and budgeted variable overhead of P240,000. The actual results revealed that direct labor incurred amounted to P1,148,000 and that the unfavorable variable overhead variance was P40,000. Labor trouble caused an unfavorable labor efficiency variance of P120,000, and new employees hired at higher rates resulted in an actual average wage rate of P16.40 per hour. What is the total number of standard direct labor hours allowed for the actual units produced?

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