Reference no: EM132959397

The following is the summarized income statement of Ruby Co.'s profit center for October:

Contribution Margin P 70,000

Period Expenses:

Manager's salary P 20,000

Facility depreciation 8,000

Corporate expense allocated 5,000 (33,000)

Profit center income P 37,000

Problem 1: Which of the following amounts is most likely subject to the control of the profit center's manager?

a. P 70,000         c. P 37,000

b. P 50,000         d. P 33,000

Problem 2: If a manufacturing company uses responsibility accounting, which one of the following items is least likely to appear in a performance report for a manager of an assembly line?

a. Labor payroll       c. Repairs and maintenance

b. Materials            d. Depreciation on equipment