PROBLEM 1 Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available: . . . Total manufacturing costs incurred during the year, P2,200,000; Cost of goods manufactured amounted to P1,940,000; Factory Overhead is applied to production at 80% of direct labor cost; Applied Factory Overhead during the year amounted to 30% of total manufacturing cost; Beginning work-in-process inventory was 75% of the work-in-process at the end. Compute for the cost of direct materials used for the year ended December 31, 2019. PROBLEM 2 The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost Shown below are machine-hours and total overhead costs for the past six months: Machine- Overhead Hours Cost Jan 150,000 P339,000 Feb 140,000 P328,000 Mar 160,000 P350,000 Apr 130,000 P319,500 May 170,000 P362,500 Jun 200,000 P400,000 Assume that the relevant range includes all of the activity levels mentioned in this problem. If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method? PROBLEM 3 For producing 200 units of product, a company uses P60,000 of direct materials, pays P70,000 of direct labor and incurs P20,000 and P60,000 variable overhead and fixed overhead, respectively. Compute the product unit cost assuming that 450 units are produced. PROBLEM 4 Express your answer using the cost function. ex: Y=1234+56.78X . SomethingNew is a small one-person company that provides elaborate and imaginative wedding cakes to order for very large wedding receptions. The owner of the company would like to understand the cost structure of the company and has compiled the following records of activity and costs incurred. The owner believes that the number of weddings catered is the best measure of activity. Month January February March April May June Weddings Costs Incurred 3 P3,800 2 P3,600 6 P4,000 9 P4,300 12 P4,500 20 P5,200 Using the least-squares regression method, estimate the variable cost per wedding and the total fixed cost per month. (Round off the variable cost per wedding to the nearest cent and the total fixed cost to the nearest dollar.) PROBLEM 5 The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year. Factory overhead costs incurred during the year: Property taxes - factory Utilities factory Indirect labor Depreciation factory Insurance factory Total Actual FOH costs Other costs incurred during the year: Purchases of raw materials Direct labor cost P 1,600 2,600 5,100 13,000 2,500 P 24,800 P 15,000 22,000 Inventories: Raw materials, beginning Raw materials, ending Work-in-process, beginning Work-in-process, ending P 5,000 4,400 3,500 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was P4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year. Compute for the cost of goods manufactured for the year.