I got you, moonlight, you\'re my starlight I need you all night, come on, dance with me I\'m levitating PDF

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I got you, moonlight, you're my starlight
I need you all night, come on, dance with me
I'm levitating
You, moonlight, you're my starlight (you're the moonlight)
I need you all night, come on, dance with me
I'm levitating
I believe that you're for me, I feel it in ...

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NAME:

YEAR& EXERCISE 2: MAKE OR BUY DECISION

Packet Man, Inc. can buy for P5 per unit a part that costs the company P6 per unit to produce. The P6 unit cost of producing a normal required volume of 10,000 units per month is presented as follows: Manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead per month Total cost of manufacturing 10,000 units per month Average manufacturing cost per unit (P60,000 / 10,000 units)

P 8,000 P 12,500 P 10,000 P 29,500 P 60,000 P6

Supposing that a review of operations indicates that if the production of this part were discontinued all the cost of direct materials and direct labor plus P 9,000 of variable overhead would be eliminated. In addition, P 2,500 of the fixed overhead would be eliminated. Is it cheaper to make or to buy? Show computations.

Direct materials Direct labor Variable overhead Fixed overhead month Total cost

Per Unit 0.8 1.25 1 per 2.95 6

TOTAL RELEVANT COST 10,000 units MAKE Direct Materials (10,000 units 8,000 @ P0.8 per unit) Direct Labor (10,000 units @ 12,500 P1.25 per unit) Variable Overhead (10,000 10,000 units @ P1 per unit) Fixed Overhead per month 29,500 (10,000 @ P2.95 per unit) Outside purchase price Total cost 60,000 Differences in buying or -10,000 continuing to make

10,000 units 8,000 12,500 10,000 29,500 60,000

BUY

50,000 50,000

EXERCISE 3: SELL OR PROCESS FURTHER From a common input in a joint processing operation, Bradley Company produces three products. The company incurs joint processing costs of P200,000 per year up to split-off point. These joint costs are distributed to the three products based on their total sales value at the split-off point: P100,000 for Product A; P180,000 for Product B; and P120,000 for Product C. Products A, B & C may be sold at split-off point or may be processed further. No additional facilities are needed for the additional process. The annual costs of further processing the products and their sales value thereafter are shown below: Product A B C

Further Processing Costs P70,000 80,000 300,000 24,000 150,000

Sales Value P160,000

Required: From above data, show computations which product or products should be sold at the split-off point, and which should be processed further. Revenue if Product A will be processed further Less: Revenue if Product A is sold at split-off point Incremental Revenue of processed further product Less: Further processing cost Net decrease in operating income from processed further product

160,000 100,000 60,000 70,000 (10,000)

Revenue if Product B will be processed further Less: Revenue if Product B is sold at split-off point Incremental Revenue of processed further product Less: Further processing cost Net increase in operating income from processed further product

300,000 180,000 120,000 80,000 40,000

Revenue if Product C will be processed further Less: Revenue if Product C is sold at split-off point Incremental Revenue of processed further product Less: Further processing cost Net increase in operating income from processed further product

150,000 120,000 30,000 24,000 6,000...