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36

The Bohol Company uses standard costing. The following data are available for October:

Actual quantity of direct materials used 23,500 pounds

Standard price of direct materials P2 per pound

Material quantity variance P1,000 U

The standard quantity of materials allowed for October production is:

Group of answer choices

23,000 lbs

24,500 lbs

24,000 lbs

25,000 lbs

The Oregano Watch Company manufactures a line of ladies watches which are sold through discount houses. Each watch is sold for P1,500; the fixed costs are P3,600,000 for 30,000 watches or less; variable cost is P900 per watch.

What is Oreganos margin of safety ratio at sales of 15,000 watches?

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