Determine the total variable material cost

Assignment Help Managerial Accounting

Reference no: EM132780421

PROBLEM 1 - The cost accountant of SINGTO CORPORATION determined that material cost is a mixed cost with units produced as the appropriate cost driver for the variable cost within the relevant range of 6,000 to 16,500 units produced. Data for the corporation's six departments are as follows:

Department A

Material Cost = P 357,240.00

Unit Cost = 13,200.00

Department B

Material Cost = 313,900.00

Units Cost = 11,000.00

Department C

Material Cost = 390,730.00

Unit Cost = 14,900.00

Department D

Material Cost = 272,530.00

Unit Cost = 8,900.00

Department E

Material Cost = 363,150.00

Unit Cost = 13,500.00

Department F

Material Cost = 412,400.00

Unit Cost = 16,000.00

Please help me on these questions:

A. Using high-low method, use a cost formula for Material Cost following the format Y = mx + b, where y is the total material cost and x is the unit produced. =

B. Determine the total variable material cost at 14,500 units. =

C. Determine the total material cost at 15,400 units. =

D. Determine the total material cost at 17,000 units. =

PROBLEM 2 - PERAYA Incorporated, which produces and sells a single product, has provided the following contribution format income statement for March:

Sales (5,000 units) = P 720,000

Variable expenses = 180,000

Contribution margin = P 540,000

Fixed expenses = 104,400

Net operating income = P 435,600

Please help me on these questions:

A. Contribution margin per unit =

B. Contribution margin ratio =

C. Proposed net operating income if sales increased by 1,500 units. =

D. Proposed net operating income is sales decreased by P 20,000.00 and fixed expense increased by P25,200.00 =

PROBLEM 3 - Pertinent data at 1,500 units sold for SOTUS COMPANY follows:

Sales = P 60,000.00

Variable Expense = 42,000.00

Contribution Margin = P 18,000.00

Fixed Expense = 4,860.00

Net Operating Income = P 13,140.00

Please help me on these questions:

A. Break-even point in unit sales =

B. Break-even point in peso sales =

C. Degree of operating leverage =

3. B Using degree of operating leverage (complete, unrounded), solve for the following:

D. Peso increase in net operating income if sales increased by 20% =

E. Proposed net operating income if sales decreased by 15% =

Reference no: EM132780421

Questions Cloud

How could the exposure have occurred : A neighbor, who is 3 months pregnant, asks to talk to you because she has felt tired for the last 2 days, has a headache, a rash, and does not feel like eating.

Understanding of organizational behavior : Describe how you might demonstrate your understanding of organizational behavior in the months and years ahead.

What are challenges to mobile forensics : What are challenges to mobile forensics? What are some mobile forensic tools? Should the analysis be different on iOS vs Android?

Describe financial probity requirements for businesses : 1. Identify and describe financial probity requirements for businesses.

Determine the total variable material cost : Department A - Material Cost = P 357,240.00, Unit Cost = 13,200.00 and Department B Material Cost = 313,900.00. Determine the total variable material cost

Describe the importance of issue and why change is necessary : Provide research to show the importance of this issue and why change is necessary. For this post, you must show research in your writing using in-text citations

Explain the bottom-up and top-down design approaches : Explain the bottom-up and top-down design approaches. Which approach do you believe should be used to design a simple database with a relatively small number

What is the time and space complexity of fuzzy c-means : What is the time and space complexity of fuzzy c-means? Of SOM? How do these complexities compare to those of K-means? Give an example of a set of clusters

Which theory are you most likely to use in your practice : Define and/or describe grand, middle range, and micro-range nursing theory. For each type of theory, give one theorist and his or her theory as an example.

User Account

All Pages