TAGUIG CITY UNIVERSITY MBA-209: Managerial Accounting Final Examination 1 st Semester, SY 2021-2022 Instructions: Read and analyze each item very carefully and critically, then answer each question comprehensively. Provide theoretical, philosophical and legal bases/underpinnings to support your point/stand. Show clearly the solutions, if computations are needed to support answers. Answer the following questions independently. 1. Differentiate between Variable Costing and Absorption Costing. 2. What type of questions and decision making are answered by the income statement and balance sheet? 3. How are income statement and balance sheet related? 4. Identify and describe the differences of the main types or classification of manufacturing costs. 5. Differentiate the following and give examples: a. Period Cost vs Product Costs b. Fixed Costs vs Variable Costs C. Direct Costs and Indirect Costs d. Manufacturing Costs vs. Cost of Goods Sold e. Prime Costs vs Conversion Cost Problem Solving: Problem 1: Activities, Resources and Cost Drivers First Investment Bank is a retail branch of an established banking company in Asia. It employs 10 front-office staff and 12 back-office staff dealing with loan applications and investments and two personnel to consult with customers and manage complex portfolio investments. A team of three supervisors manages the overall operations of the bank. As part of the bank's implementation of activity-based costing, it needed to identify activities, resources and cost drivers. The following table summarizes the cost drivers First Investment Bank has chosen for its activities and resources. Cost Drivers number of investment number of applications number of loans number of person hours number of minutes number of computer transactions number of square feet number of loan inquiries number of transactions number of schedules number of securities For each brief description below, indicate whether it is (A) an Activity or (R) a Resource. For each Activity or Resource, choose the most appropriate cost driver from the list above and indicate for each Resource whether it is (FC) fixed cost or (VC) variable cost resource. Example: Contract Maintenance of building and insurance Description (A) Activity or Cost Drivers FC or VC (R) Resource Contract Maintenance of building and insurance R number of square feet FC 1. Staff for front-line customer service 2. External service bureau providing customer credit check for loan application 3. Preparing investment documents for customers 4. Research to evaluate a loan application 5. Overtime by back-office staff 6. Telephone/facsimile 7 . Staff for service and background research 8. Establish customer collateral for approved loan 9. External computing services 10. Development of repayment schedules 11. Staff for consulting with customer and arranging the portfolio 12. Wages for housekeeping of the buildingProblem 2: Cost of Goods Sold and other expenses Zoids Toys Company provides you with the following miscellaneous data regarding their operations in 20xx. Gross Profit P 200,000 Net Loss (50,000) Sales 1,000,000 Direct Materials Used 350,000 Direct Labor 250,000 Fixed Manufacturing Overhead 150,000 Fixed Selling and Administrative Expense 120,000 There are no beginning or ending inventories. Compute the following: a. Variable Selling and Administrative Expenses; b. Contribution Margin in pesos; c. Variable Manufacturing Overhead; d. Break-even sales in pesos e. Break-even sales in units f. Total Manufacturing Costs, and g. the Cost of Goods Sold