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Shelby Company has an available production capacity of 180,000 hours. This can be used to produce 3 products in any combination. The total fixed cost
Shelby Company has an available production capacity of 180,000 hours. This can be used to produce 3 products in any combination. The total fixed cost is P180,000. Other information are as follows: Y N Selling price P8 P23 25 Variable expense 7 12 2 Number of Hours 1 hour 10 hours 2 hours per unit Market Limit 5,000 units 50,000 units Assuming the best decision was made, what would be the net operating income? O P235,000 O P110,500 O P50,000 O P55,000 The following selected information pertains to Ajax Processing Co.: direct materials, P62,500; indirect materials, P12,500; factory payroll, P75,000 of direct labor and P11,250 of indirect labor; and other factory overhead incurred. P37,500. The total factory overhead was O P50,000 O 275,000 O P60,250 O P61,250 Data for September of Direction Corporation and its two major business segments, North and South, appear below: Sales, North P540,000 259,000 Variable Expenses, North Traceable fixed expenses, North 70,000 Sales, South Variable Expenses, South 800,000 408,000 Traceable fixed expenses, South 80,000 In addition, common fixed expenses totaled P319,000 and were allocated as follows: P160,000 to the North business segment and P159,000 to the South business segment. The company's net operating income as a whole is OP 51,000 OP 204,000 OP 523,000 O P 153,000
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