X Limited Corporation making one product only, the standard cost of which is as follow:

2016 2017 2018

Direct material 35,000 36000 48,000

Direct labor 30,000 33000 42,000

Variable manufacturing overhead 25,000 24000 54,000

Variable marketing costs 10,000 15000 14,000

Total variable costs 100,000 122000 158,000

- The fixed manufacturing overhead costs $300,000

- Fixed marketing costs $200,000

- The selling price $200 per unit sold

- The number of units produced and sold were:

2016 2017 2018

Beginning inv. 1000 3000

Production 5000 3000 6000

Sales 4000 . .

Ending inv. 1000

Required

1- Prepare income statements under variable, absorption and throughput costing for the year ended

December 31, 2018.

2- Explain the difference of the results?

Question No. Five

*(A)

The following data obtained from XYZ Corporation represent the total overhead cost and the overhead

working hours for the past ten weeks:

Period Working-Hours Overhead Costs

1 100 12000

2 60 22000

3 20 10000

4 100 33000

5 80 20000

6 60 16000

7 40 14000

8 120 40000

9 80 22000

10 40 11000

Required

1- Plot the relationship between Working-Hours and overhead Costs

2- Use the high-low method to compute the cost function, relating working-hours and overhead costs

2- What is the increase in maintenance costs for each 1500 working-hours