1. In its first year of operations, MJK Manufacturers had the following costs when it produced 100,000 and sold 80,000 units of its only product: How much lower would MJK's net income be if it used variable costing instead of full absorption costing?

2. KLM Company has three sustaining engineers, each of whom is paid P50,000 per year and is able to process 2,500 change orders. Last year, 6,000 change orders were processed by the three engineers. Calculate the activity rate per change order.

How much is the unused capacity?

3. QRS Company installs computerized patient record systems in hospitals and medical centers. QRS has noticed that eacH general type of system is subject to an 80 percent learning curve. The installation takes a team of professionals to set up and test the system. Assume that the first installation takes 1,000 hours and the team of professionals is paid an average of P50 per hour. If QRS is budgeting labor cost for next year based on the installation of 16 additional system, How much is the total budgeted labor cost for a team that had previously completed 16 systems the prior year?

Calculate the budgeted labor cost for a new team that had not completed any systems to date

Manufacturing costs Fixed Variable P180,000 160,000 Selling and admin costs Fixed Variable 90,000 40,000