You were hired as the new Budget Officer of Tarantada Manufacturing Corporation. You were required to prepare the Master Budget of its only product, "Taranta" for the year 2020.

The following data are available:

Planned sales volume for 2019 106,000 units @ P310.00

Inventories:	beginning	desired ending
Finished goods	16,000 units @ P147.00	10,000 units
Raw materials	14,000 kilos @ P15.00	12,000 kilos
In process	0	0

Standard Variable Cost per unit of Taranta:

Direct materials	2 kilos @ P15.00	P30.00
Direct Labor	3 hours @ P30.00	P90.00
Variable FOH	3 hours @ P5.00	P15.00

Fixed Factory Overhead - P1,200,000

Budgeted variable operating expenses per unit - P20.00

Fixed operating expenses for 2019 - P800,000

1. The budgeted production volume is (units)

a. 200,000

b. 100,000

c. 120,000

d. 130,000

e. 150,000

2. The budgeted material usage is (kilos)

a. 200,000

b. 210,000

c. 220,000

d. 198,000

e. 202,000

3. The budgeted materials cost is (pesos)

a. P2,900,000

b. P2,950,000

c. P3,000,000

d. P3,100,000

e. P3,050,000

4. The budgeted quantity of material purchases is (units)

a. 200,000

b. 210,000

c. 220,000

d. 198,000

e. 202,000

5. The budgeted cost of material purchases is (pesos)

a. P2,900,000

b. P2,970,000

c. P3,000,000

d. P3,100,000

e. P3,050,000

6. The budgeted direct labor cost is (pesos)

a. P900,000

b. P9,000,000

c. P4,500,000

d. P8,000,000

e. P7,500,000

7. The budgeted factory overhead is (pesos)

a. P1,200,000

b. P2,200,000

c. P1,500,000

d. P2,500,000

e. P2,700,000

8. The budgeted cost of goods manufactured is (pesos)

a. P15,000,000

b. P14,500,000

c. P14,600,000

d. P14,700,000

e. P14,800,000

9. The budgeted cost of goods sold is (pesos)

a. P15,000,000

b. P15,550,000

c. P15,582,000

d. P15,592,000

e. P15,575,000

10. The budgeted cost of finished goods ending inventories is (pesos)

a. P1,500,000

b. P1,470,000

c. P1,450,000

d. P1,475,000

e. P1,490,000

11. The total budgeted fixed cost and expense is (pesos)

a. P2,000,000

b. P1,950,000

c. P2,050,000

d. P2,100,000

e. P2,200,000

12. The budgeted variable cost and expenses per unit is (pesos)

a. 130

b. P135

c.P140

d. P150

e. P155

13. The budgeted contribution margin per unit is (pesos)

a. 130

b. P135

c.P140

d. P150

e. P155

14. The budgeted contribution margin rate is

a. 25%

b. 30%

c. 40%

d. 45%

e. 50%

15. The budgeted break-even peso sales is (peso)

a. P10,000,000

b. P5,000,000

c. P12,000,000

d. P4,000,000

e. P8,000,000

Part 2

1.High-Low Method. You are requested to help in the preparation of fixed budgets. The study made of the shipping expenses showed the following over a period of time, and there is no indication that past trends will change in the future:

Sales Volume	ShippingExpense
10,300	P3,090
11,700	3,100
13,500	3,330
27,500	5,850
9,300	2,889
9,700	2,910
14,000	4,170
15,000	4,200
10,000	2,900
10,500	3,225

Required:

(a)Variable cost per unit

(b)The fixed cost portion

(c)The total amount of shipping expense, assuming that the sales volume is 11,300.

2.Break-even Point and Other Information. Presented hereunder is the Statement of Comprehensive Income of DE Corporation for the year ended December 31, 2020.

DE Corporation

Statement of Comprehensive Income

For the Year Ended December 31, 2020

Sales (20,000 units) P300,000

Less: Cost of Sales 180,000

Gross Income 120,000

Less: Selling and Administrative Exp. 80,000

Operating income 40,000

======

Other data:

1/3 of the cost of sales is fixed

75% of the selling and administrative expenses is variable

Required: Determine the following

(a)Total fixed cost

(b)Variable cost per unit

(c)Variable cost ratio

(d)Contribution margin per unit

(e)Contribution margin ratio

(f)Break-even point in units

(g)Break-even point in pesos