1. The following are ABC's balances for last month: sales, P2 million; variable expenses, P1.4 million; fixed expenses, P360,000. The company has no beginning and ending inventories. A total of 40,000 units were produced and sold last month. What is the company's degree of operating leverage?

0.12

0.40

2.50

3.30

None of the above

2. Phoebe Corporation uses a standard cost system. Direct labor information for product B for the month of September is as follows: Standard rate P6.10 per hour Actual rate paid P6.00 per hour Standard hours allowed for actual production 1,500 hours Labor efficiency variance P 600 unfavorable What is the actual hours worked?

1,400

1,402

1,598

1,600

None of the above