1 Depreciation on Salesperson's Cars

2 Rent in equipment used in factory

3 Lubricants used for Machine Maintenance
4 Salaries of personnel who work in the finished goods warehouse
5 Soap and paper towels used by the factory workers at the end of a shif
6 Factory Supervisor's salaries
7 Water and power consumed in the factory
8 Materials used for boxing products for shipment overseas (units are normally boxed.)
9 Advertising cost
10 Factory Worker's Share in their SSS Contribution
11 Depreciation on chair and tables in the factory lunchroom
12 The wages of the receptionist in the administrative offices
13 Cost of leasing the corporate jet used by the company's executives
14 The cost of renting rooms at a Batangas resort for the annual managers' conference
15 The cost of packaging the company's product
16 Wages of workers in the Machining Department
Product or Period Variable or Fixed
Period Fixed
Product Fixed
Product Variable
Product Fixed
Product Variable
Product Fixed
Product Fixed
Period Variable
Period Fixed
NONE NONE
Product Fixed
Period Fixed
Period Fixed
Period Fixed
Product Variable
Product Variable
 Cost Item Unit Price 3000 Units Unit Price 7000 Units
Depreciation ₱ 16.67 ₱ 50,000.00 ₱ 7.14 ₱ 50,000.00
Materials ₱ 5.00 ₱ 15,000.00 ₱ 5.00 ₱ 35,000.00
Labor ₱ 7.00 ₱ 21,000.00 ₱ 7.00 ₱ 49,000.00
Factory Supplies ₱ 8.00 ₱ 24,000.00 ₱ 6.00 ₱ 42,000.00
Factory Supervisor's Salaries ₱ 26.67 ₱ 80,000.00 ₱ 11.43 ₱ 80,000.00
Insurance ₱ 10.00 ₱ 30,000.00 ₱ 4.29 ₱ 30,000.00
Maintenance ₱ 4.00 ₱ 12,000.00 ₱ 6.80 ₱ 47,600.00
Rent ₱ 20.00 ₱ 60,000.00 ₱ 8.57 ₱ 60,000.00
Electricity ₱ 3.00 ₱ 9,000.00 ₱ 4.60 ₱ 32,200.00
Variable, Fixed or Mixed
Fixed
Variable
Variable
Mixed
Fixed
Fixed
Mixed
Fixed
Mixed
Gathered Information

Number of Muffler Replacements 600 700 800

Total Costs:
Fixed Costs: ₱ 56,000.00 ₱ 56,000.00 ₱ 56,000.00
Variable Cost: ₱ 24,000.00 ₱ 28,000.00 ₱ 32,000.00
Total Costs: ₱ 80,000.00 ₱ 84,000.00 ₱ 88,000.00

Cost of Muffler Replacements

Fixed Costs: ₱ 93.33 ₱ 80.00 ₱ 70.00
Variable Cost: ₱ 40.00 ₱ 40.00 ₱ 40.00
Total Cost per Muffler replacement ₱ 133.33 ₱ 120.00 ₱ 110.00

Requirement
a Fill in the missing amounts
b Compute income, assuming that the service fee per muffler replacement is 150, and that the company made 750 muffl

Income of 750 units @ 150 112500

e company made 750 muffler replacements during the period
 Months Kilometers Traveled(x) Maintenance Costs(y)
November 12,750 ₱ 17,100.00
December 15,900 ₱ 17,400.00
January 19,050 ₱ 17,550.00
February 22,500 ₱ 18,000.00
March 30,000 ₱ 18,750.00
April 2,000 ₱ 74,000.00 outliers
May 12,000 ₱ 16,500.00

Requirements:
1 Used High-Low method to estimate the variable cost per kilometer traveled and the fixed cost per month
2 Develop a formula to express the cost behavior exhibited by the company's maintenace cost
3 Predict the level of maintenance cost that would be incurred during a month when 34,000 kilometers are given
4 Repeat requirement 1 to 3 using the method of least squares

1 High-Low Method
Cost High Low
₱ 18,750.00 ₱ 16,500.00 ₱ 2,250.00
Activity High Low
30,000 12,000 18,000

Unit Cost 0.125

2 y=a+bx
18750=a+0.125(30000)
15000

y=15,000 +0.125x

3 y=a+bx
y=15,000+0.125(34000)
y=19250
 the fixed cost per month
ntenace cost
en 34,000 kilometers are given

1 Least Square
Months Kilometers Traveled(x) Maintenance Costs(y)
November 12,750 ₱ 17,100.00
December 15,900 ₱ 17,400.00
January 19,050 ₱ 17,550.00
February 22,500 ₱ 18,000.00
March 30,000 ₱ 18,750.00
May 12,000 ₱ 16,500.00
112,200 ₱ 105,300.00

sumY=na+bsumx
sumxy=asumx+bsumxsquared

a
 xy x squared
₱ 218,025,000.00 162562500
₱ 276,660,000.00 252810000
₱ 334,327,500.00 362902500
₱ 405,000,000.00 506250000
₱ 562,500,000.00 900000000
₱ 198,000,000.00 144000000
₱ 1,994,512,500.00 2328525000

₱ 105,300.00 6a b 112,200
₱ 1,994,512,500.00 a 112,200 b 2328525000

105300=6a+112200b x18700
1994512500=112200a+2328525000b
1969110000=𝟏𝟏𝟐𝟐𝟎𝟎a+2098140000b -230385000
1994512500=112200a+2328525000b
-25402500 -230385000
0.11
105300=6a+112200(.11) 12342
15493 92958 15493
0
 Months Wedding Cost Incurred
January 3 ₱ 3,800.00
February 2 ₱ 3,600.00
March 6 ₱ 4,000.00
April 9 ₱ 4,300.00
May 12 ₱ 4,500.00
June 20 ₱ 5,200.00

Requirements:
1 Used High-Low method to estimate the variable cost per kilometer traveled and the fixed cost per month
2 Develop a formula to express the cost behavior exhibited by the company's maintenace cost
3 Predict the level of maintenance cost that would be incurred during a month when 34,000 kilometers are given
4 Repeat requirement 1 to 3 using the method of least squares

1 High-Low Method
Cost High Low
₱ 5,200.00 ₱ 3,600.00 ₱ 1,600.00
Activity High Low
20 2 18

Unit Cost 88.89

2 y=a+bx
5200=a+88.89(20) 1777.8
a 3422
 the fixed cost per month
ntenace cost
en 34,000 kilometers are given

1 Least Square
Months Kilometers Traveled(x) Maintenance Costs(y)
Months Wedding Cost Incurred
January 3 ₱ 3,800.00
February 2 ₱ 3,600.00
March 6 ₱ 4,000.00
April 9 ₱ 4,300.00
May 12 ₱ 4,500.00
June 20 ₱ 5,200.00
52 ₱ 25,400.00

sumY=na+bsumx
sumxy=asumx+bsumxsquared

b
 xy x squared
#VALUE! #VALUE!
₱ 11,400.00 9
₱ 7,200.00 4
₱ 24,000.00 36
₱ 38,700.00 81
₱ 54,000.00 144
₱ 104,000.00 400
₱ 239,300.00 674

25400=6a+52b 8.67
239300=𝟓𝟐a+674b
220133=𝟓𝟐a+451b
239300=𝟓𝟐a+674b
-19167 -223
85.95 b
25400=6a+52b
25400=6a+52(85.82) 4462.64
20937.36
3489.56
 Unit of Output 30000 Units 42000 Units

Direct Materials ₱ 180,000.00 ₱ 252,000.00

Workers' Wages ₱ 1,080,000.00 ₱ 1,512,000.00
Supervisor Salaries ₱ 312,000.00 ₱ 312,000.00
Equipment Depreciation ₱ 151,200.00 ₱ 151,200.00
Maintenance ₱ 81,600.00 ₱ 110,400.00
Utilities ₱ 384,000.00 ₱ 528,000.00
₱ 2,188,800.00 ₱ 2,865,600.00

₱ 676,800.00 ₱ 56.40
12000

y=a+56.40(42000) y=496800+56.40x
496800
y=496800+56.40(36000) 2030400
2527200
0.263158 0.285714 0.285714 3.5

This Year Last Year

Variable 3.5 3.5
Fixed
210 198 1.05 1.2375