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45. Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations: Year 1
45. Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations: Year 1 Year 2 Units (spice racks) produced 40,000 40,000 Units (spice racks) sold 37,000 41,000 Absorption costing net operating income Php 44,000 Php 52,000 Variable costing net operating income Php 38,000 ? ? ? Pungent's cost structure and selling price were the same for both years. What is Pungent's variable costing net operating income for Year 2? A) Php48,000 B) Php50,000 C) Php54,000 D) Php56,000Use the following to answer questions 45-52: Abdi Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Php 81 Units in beginning inventory 0 Units produced 7,300 Units sold 7,000 Units in ending inventory 300 Variable costs per unit: Direct materials Php 20 Direct labor Php 30 Variable manufacturing overhead Php 7 Variable selling and administrative Php 11 Fixed costs: Fixed manufacturing overhead Php 65,700 Fixed selling and administrative Php 21,000 45. What is the unit product cost for the month under variable costing? A) Php77 B) Php66 C) Php68 D) Php5746. What is the unit product cost for the month under absorption costing? A) Php66 B) Php77 C) Php57 D) Php68 47. The total contribution margin for the month under the variable costing approach is: A) Php91,000 B) Php 168,000 C) Php 105,000 D) Php25,300 48. The total gross margin for the month under the absorption costing approach is: A) Php 105,000 B) Php124,800 C) Php7,000 D) Php91,000 49. What is the total period cost for the month under the variable costing approach? A) Php65, 700 B) Php163,700 C) Php98,000 D) Php86,700 50. What is the total period cost for the month under the absorption costing approach? A) Php98,000 B) Php65, 700 C) Php21,000 D) Php 163,70051.What is the net operating income for the month under variable costing? A) Php2,700 B) Php4,300 C) Php7,000 D) Php(12,800) 52. What is the net operating income for the month under absorption costing? A) Php7,000 B) Php4,300 C) Php(12,800) D) Php2,700 53. The term cost driver refers to A) any activity that can be used to predict cost changes B) the attempt to control expenditures at a reasonable level. C) the person who gathers and transfers cost data to the management accountant. D) any activity that causes costs to be incurred 54. Engaging in which of the following will result in radical changes being made to an organization's processes? A) Continuous improvement B) Benchmarking C) Reengineering D) Mass customizationTech Company uses activity-based costing. The company produces two products: Laptops and Tablets. The annual production and sales volume of Laptops is 8,000 units and of Tablets is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Expected Expected Activity Estimated Activity Activity Cost Pool Cost Laptops Tablets Total Activity 1 P20,000 100 400 500 Activity 2 P37,000 800 200 1,000 Activi 3 P91 ,200 800 3,000 3,800 55. Refer to Tech Coman . Usin ABC, the cost uer unit of La tos is an roximatel : 57. Which of the following is not a balanced scorecard category? A) nancial measures B) environmental measures C) business process measures D) personnel measures 58. A primary purpose of a balanced scorecard is to give A) managers a way to judge past performance. B) stockholders a way to judge current performance. C) managers a way to forecast future performance. D) stockholders a way to tie strategy to profitability. 59. In a balanced scorecard, measurements should be directly linked to A) organizational strategy and values. B) the cost management system. C) current organizational profitability. D) activity-based management concepts. 60. On a balanced scorecard, which of the following would be most appropriate to measure customer service? A) Rapid time-to-market of new products B) Corporate financial profits C) On-time delivery D) Decrease in reworked productsEarl Tech Corporation manufactures and sells various high-tech ofce automation products. Two divisions of Ofce Products Inc. are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a "super chip," that can be used by both the Computer Division and other external customers. The following information is available on this month's operations in the Computer Chip Division: Selling price per chip Php 50 Variable costs per chip Php 20 Fixed production costs Php 60,000 Fixed SG&A costs Php 90,000 Monthly capacity 10,000 chips External sales 6,000 chips Internal sales 0 chips Presently, the Computer Division purchases no chips from the Computer Chips Division, but instead pays Php45 to an external supplier for the 4,000 chips it needs each month. 61. Refer to Earl Tech Corporation. Assume that next month's costs and levels of operations in the Computer and Computer Chip Divisions are similar to this month. What is the minimum of the transfer price range for a possible transfer of the super chip from one division to the other? A) Php 50 B) Php 45 C) Php 20 D) Php 35 62. Refer to Earl Tech Corporation. Assume that next month's costs and levels of operations in the Computer and Computer Chip Divisions are similar to this month. What is the maximum of the transfer price range for a possible transfer of the chip from one division to the other? A) Php 50 B) Php45 C) Php35 D) Php30 63. Refer to Earl Tech Corporation. Two possible transfer prices (for 4,000 units) are under consideration by the two divisions: Php35 and Php40. Corporate prots would be _ if Php35 is selected as the transfer price rather than Php40. A) Php20,000 larger B) Php40,000 larger C) Php20,000 smaller Anaem 64. Refer to Earl Tech Corporation. If a transfer between the two divisions is arranged next period at a price (on 4,000 units of super chips) of Php40, total prots in the Computer Chip division will A) rise by Php20,000 compared to the prior period. B) drop by Php40,000 compared to the prior period. C) drop by Php20,000 compared to the prior period. D) rise by Php80,000 compared to the prior period. 65. Refer to Earl Tech Corporation. Assume, for this question only, that the Computer Chip Division is selling all that it can produce to external buyers for Php50 per unit. How would overall corporate prots be affected if it sells 4,000 units to the Computer Division at Php45? (Assume that the Computer Division can purchase the super chip from an outside supplier for Php45.) A) no effect B) Php20,000 increase C) Php20,000 decrease D) Php90,000 increase
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