D - Quizzers PDF

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component? a. P15.55 b. P11.50 c. P19.15 d. P15.10 40. Jordan Company budgeted sales of 400,000 calculators at P40 per unit last year. Variable manufacturing costs were budgeted at P16 per unit, and fixed manufacturing costs at P10 per unit. A special order for 40,000 calculators at P23 each was received by Jordan in March. Jordan has sufficient plant capacity to manufacture the additional quantity without incurring any additional fixed manufacturing costs; however, the production would have to be done on an overtime basis at an estimated additional cost of P3 per calculator. Acceptance of the special order would not affect Jordan's normal sales and no selling expenses would be incurred. What would be the effect on net operating income if the special order were accepted? a. P120,000decrease b. P240,000decrease c. P160,000increase d. P280,000increase 41. Two products, LB and NH, emerge from a joint process. Product LB has been allocated P30,800 of the total joint costs of P44,000. A total of 2,000 units of product LB are produced from the joint process. Product LB can be sold at the split-off point for P13 per unit, or it can be processed further for an additional total cost of P14,000 and then sold for P15 per unit. If product LB is processed further and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point? a. b. c. d.

P16,000 more profit P20,800 more profit P 40,800 less profit P 10,000 less profit

42. Items 42 and 43 are based on the following information: Regis Company makes the plugs it uses in one of its products at a cost of P36 per unit. This cost includes P8 of fixed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to Regis at P33 per unit. If Regis decides to purchase the plugs, P60,000 of the annual fixed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. If Regis Company purchases the plugs but does not rent the unused facility, the company would:

a. save P3.00 per unit b. save P6.00 per unit c. lose P6.00 per unit d. lose P3.00 per unit 43. If the plugs are purchased and the facility rented, Regis Company wishes to realize P100,000 in savings annually. To achieve this goal, the minimum annual rent on the facility must be: a. b. c. d.

P10,000 P40,000 P70,000 P190,000

44. Items 44 to 46 are based on the following information: Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price .................................................... P150 Direct materials ............................................... P26 Direct labor...................................................... P3 Variable manufacturing overhead ................... P1 Fixed manufacturing overhead........................ P17 Variable selling expense ................................. P2 Fixed selling and administrative expense ....... P18

The above per unit data are based on annual production of 8,000 units of the component. Direct labor can be considered to be a variable cost. The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Dockwiller has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company should not go? a. b. c. d.

P67 P30 P150 P47...