Correct Answer with solution

Question 11 2.5 pts Managers who are considering whether to sell or process further a product should only consider incremental revenues of processing further Question 12 2.5 pts The shutdown point is considered to be the point where: 0 Contribution margin of continuing = loss on shutting down {3- Sales of continuing = loss on shutting clown O Break-even point = less on shutting down {:9 Loss on continuing = shutdown costs Question 13 2.5 pts Under throughput costing, only direct materials and direct labor are considered to be product costs (9 False 0 True Question 1 4 When considering to drop a segment. the following costs are relevant in the decisions, except: 2.5 pts Question 15 2.5 pts An example of a relevant cost is a future cost that remains the same between alternatives W1] Company produces furniture. It has four products, tables, chairs, cahjnej and bookshelves. It has 50,000 direct Lam; hours available. Below are the details pertaining to each product: Table Bookshelves CMIUnit P25 P24 DLHr'Unit 5 hours 5 hours Maximum demand 3,500 units 12,000 units 5,000 units 3,000 units What will be the highestcontnbution margin if we prioritize the products properly?I O P391500 0 P291500 0 P312,000 P3043300 Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? O Sell so that profit will increase by P27,000. O Don't sell, it will incur a loss of P73,000. O Sell, there will be a net benefit of P12,000. O The company is indifferent.Question 18 2.5 pts Easylang Company provided the following information below: Variable production costs P400,000 Fixed production costs 270,000 Variable period costs 120,000 Fixed period costs 190,000 How much is the period costs under direct costing? O P460,000 O P310,000 O P580,000 O P390,000Question 19 2.5 pts Lido manufactures A and B from a joint process (cost = P80,000). Five thousand pounds of A can be sold at split-off for P20 per pound or processed further at an additional cost of P20,000 and then sold for P25. Ten thousand pounds of B can be sold at split-off for P15 per pound or processed further at an additional cost of P20,000 and later sold for P16. If Lido decides to process B beyond the split-off point, operating Income will: O decrease by P58,000. O decrease by P10,000. O increase by P10,000. O increase by P20,000. O decrease by P20,000.Question 20 2.5 pts Ortega Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of P450,000 and have traceable fixed operating costs of P480,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by P370,000 and Ortega's net income will: O decrease by P340,000. O increase by P80,000. O increase by P340,000. O increase by P30,000. O decrease by P80,000