1. Dahican Corp. considers a project that will generate cash sales of 50,000 per year.Fixed costs will be 10,000 per year, variable cost will be 40% of sales, and depreciation of the equipment in the project will be 5,000 per year.Taxes are 40%.The expected annual cash flow to the company resulting from the project is

2.University Company uses a standard cost system and prepared the following budgeted amounts at normal capacity for the month of January:

Direct Labor Hours 24,000

Variable Factory Overhead P48,000

Fixed Factory Overhead P108,000

Total Factory Overhead per DLH P6.50

Actual data for January were as follows:

Direct Labor Hours worked 22,000

Total Factory Overhead P147,000

Standard direct labor hours allowed for capacity attained 21,000

a.Using the 2-way method, the volume variance for January is

b.Using the 2-way method, the controllable variance for January is

3.The MMK Corporation determines the manufacturing cost per order of a raw material is P50. The company expects to use P100,000 of this material in the coming year. Its carrying charge is 10% of inventory.

a. Determine the number of times the raw material be ordered in the coming year.

b. Determine the Economic Order Quantity in pesos.

4. The following are Gordon Company's direct labor costs:

Standard direct labor hours

30,000

Actual direct labor hours

29,000

Direct labor usage variance-favorable

P4,000

Direct labor rate variance-favorable

P5,800

Total payroll

P110,200

Gordon's standard direct labor rate

5. Sands Corporation operates two stores, K and M. The following information relates to store K:

Sales

P1,300,000

Variable operating expenses

600,000

Fixed expenses traceable to K and controllable by K

275,000

Fixed expenses traceable to K and controllable by others

80,000

K's segment contribution margin is

6.A project has a NPV of 30,000 when the cut off rate is 10%.The annual cash flows are 41,010 on an investment of 100,000.The profitability index for this project is

7. Pharma Corporation produces a single product. Last year, the company had net operating income of P40,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was P1.60 per unit, the net operating income using absorption costingwould be