The supervisor of Department X purchases supplies, authorizes repairs and maintenance service, and hires labor for the department. Various costs for the month of March 2021 are given below: Sales salaries and commission Salary, supervisor of Department X Factory, heat and light General office salaries Depreciation, factory Supplies, Department X Repairs and maintenance Factory insurance Labor cost, Department X Salary of factory superintendent Total Required: P 9,850 1,800 650 14,200 750 1,430 820 460 17,220 2.400 P 49.850 1. List the costs that can be controlled by the supervisor of Dept. X 2. List the costs that can be directly identified with Department X 3. List the costs that will have to be allocated to the factory departments 4. List the costs that do not pertain to factory operations. Problem 2 Francesca Company has three divisions - marketing, production, and personnel. There is a manager in charge of each division. The flexible budget for each division follows: Controllable Costs Marketing Production Personnel Direct materials Direct labor Salaries Supplies Maintenance Total P 80,000 20,000 P 20,000 50,000 6,000 P 70,000 4,000 2,000 4,000 2,000 P102,000 P 80,000 P 76,000 Actual Costs of the Departments: Direct Materials Direct labor Salaries Supplies Maintenance Required: P 24,000 48,000 102,000 68,000 1,600 4,000 3,000 400 3,000 1,000 1. Prepare and evaluate a performance report for the production manager. 2. Prepare and evaluate a performance report for the vice president. Other costs for the vice president are assumed to be: Budgeted P 70,000 and actual, P 68,800 Problem 3 Gaylan Company has two investment centers and has developed the following information: Departmental controllable margin Average operating assets Sales Head Division Foot Division P90,000 ? ? P400,000 1,000,000 1,250,000 12% 8% ROI Instructions Answer the following questions about the two divisions: a. What was the amount of the Head Division's average operating assets? b. What was the amount of Foot Division's controllable margin? c. If the Foot Division is able to reduce its operating assets by P100,000, how much would its new ROI be? d. If the Head Division is able to increase its controllable margin by P20,000 as a result of reducing variable costs, how much would its new ROI be? Problem 4 The Candle Division of Dax Wax Company reported the following results for 2020: Sales Variable costs Controllable fixed costs Average operating assets P800,000 420,000 100,000 4,000,000 Management is considering the following independent alternative courses of action in 2021 in order to maximize the return on investment for the division. 1. Reduce controllable fixed costs by 50% with no change in sales or variable costs 2. Reduce average operating assets by 30% with no change in controllable margin 3. Increase sales P200,000 with no change in the contribution margin percentage Instructions a. Compute the return on investment for 2020. b. Compute the expected return on investment for each of the alternative courses of action in 2021.