1. A company's current breakeven sales (BES) is 600,000. If fixed cost would increase by 10% of the current breakeven sales, such current BES would increase by 40%. What is the Variable cost ratio?

? 40%

? 60%

? 75%

? 80%

? None of the above

2. X Corp company manufactures product X. The company uses a standard costing of accounting system. In July 2020, 12,000 products were made. The following standard cost data applied to the month of July.

Cost Element Standard (per unit) Direct materials 5 meters at P 7 per meter Direct Labor 1 hour at P 12 per br Overhead 1 hour at P 9 per hr (fixed P 6; variable is P 3) The actual cost data are as follows: Cost Actual cost Direct materials P 423,400 for 58,000 meters (7.30 per meter) Direct Labor P 128,800 for 11,500 hours (P 11.20 per hour) Overhead P 90,000 fixed overhead and P 42,000 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were P 90,000 and a budgeted variable overhead cost is P 45,000. Compute the volume variance