MANAGERIAL ACCOUNTING

NEED THE ANSWERS IN 30-45 MINS! PLEASE MAKE SURE ITS CORRECT!

1. The cost accountant of CHRITMAS CORPORATION determined that direct labor cost is a mixed cost. Units produced is the cost driver within the relevant range of 8,000 to 15,000 units.

Data for the corporation's monthly expenses are as follows:

	Direct Labor Cost (in PHP)	Units Produced
JANUARY	26,815.00	15,000.00
FEBRUARY	21,565.00	12,000.00
MARCH	26,290.00	14,700.00
APRIL	15,440.00	8,500.00
MAY	17,190.00	9,500.00
JUNE	25,502.50	14,250.00

Required: Using high-low method, develop a cost formula for direct labor cost following the format Y = mx + b, where y is the total direct labor cost and x is the unit produced. Then,

1. Determine the total variable direct labor cost at 9,750 units. =
2. Determine the total direct labor cost at 12,550 units. =

For the first requirement, follow the format: Y = mx + b, such as y = 2.00x + 500.00.

Round off variable cost per unit and total fixed cost to two decimal places. If final answer is a whole number, include two zeroes after the decimal places.

2. CHRISTMAS Corporation sold 5,000 units with the following figures:

	TOTAL
Sales	P 45,000.00
Variable Expense	27,900.00
Contribution Margin	P 17,100.00
Fixed Expense	4,500.00
Net Operating Income	P 12,600.00

Required: Determine the following:

1. Contribution margin per unit =
2. Variable expense ratio =
3. Contribution margin ratio =

3. CHRISTMAS Corporation sold 7,500 units with the following figures:

	TOTAL
Sales	P 75,000.00
Variable Expense	52,500.00
Contribution Margin	P 22,500.00
Fixed Expense	4,500.00
Net Operating Income	P 18,000.00

Required: Determine the following:

1. Break-even point in unit sales =
2. Margin of safety in peso sales =
3. Degree of operating leverage =