Answer the questions below. If possible, include solutions.

MASTER BUDGET Questions 5 thru 10 are based on the following information. The following information has been gathered by the Budget Director of the Muralla Company, another outrit managed by the Intramuros Company. The firm manufactures and sells only one product. The selling price during the coming month is expected to be the prevailing price of P5 per unit. Expected sales during the month are 75,000 units of finished goods. Finished goods expected to be on hand at the end of the month total 50,000 units. Finished goods expected to be on hand at the beginning of the month total 42,000 units. Direct labor cost is P3.00 per hour. One-fourth an hour of direct labor is required to manufacture each unit of the finished product. Factory overhead is applied to work-in-process on the basis of direct labor hours. Variable factory expenses at the planned level of operations are expected to amount to P33,200; fixed overhead is expected to amount to P99,600. The raw materials expected to be on hand at the beginning of the month total 5,000 gallons. Only one kind of raw material is used to produce the finished goods. One and one-half gallons of raw material is needed to manufacture each unit of the finished product. Raw materials are expected to cost P0.18 per gallon during the coming month, its prevailing cost. Raw materials expected to be on hand at the end of the month total 8,000 gallons. Variable administrative and selling expenses is P1.00 per unit. In assisting the company to formulate the budget. you determined the following budget parameters. Required: 5. Budgeted cost of raw materials to be used in production is a. P124,500 b. P14,940 c. P8,910 d. P22, 410 6. Budgeted raw materials purchases cost is a. P22,950 b. P22,410 c. P23,760 d. P124, 500 7. Budgeted direct labor is a. P20,750 b. P83,000 c. P62,250 d. P33,200 8. Variable overhead cost per direct labor hour is a. P1.60 b. P4.80 c. P1.80 d. P6.4 9. Fixed overhead cost per direct labor hour is a. P1.60 b. P4.80 c. P1.80 d. 6.40 10. Budgeted contribution margin is a. P5.00 b. P1.80 c. P3.40 d. P2.5837 11. Budgeted cost of goods sold (full cost) is a. P76,500 b. P96,500 c. P196, 500 d. P304,000 12. Net profit before tax is a. P178,500 b. P103,500 c. P53,000 d. P249,500