Quiz 1-1

Easy PC works believes that the best way to allocate accumulated costs is through the labor hours
clocked in by workers. High-Low method is the preferred way of cost estimation by the company. Out of
the seven weeks observed, the hours spent were as follows: 98, 84, 70, 77, 105, 161, 112; while the
costs incurred were (respectively): 525.2, 444.4, 404, 383.8, 646.4, 786.2, 864.82.
a. How much is the variable cost per unit using High-Low method?
b. How much is the total fixed cost?
c.If for the following week, they plan to clock in 140 hours, how much would be the total cost?
d. If they plan to take the next week off, how much would be the total cost?
(round off and input your answers to two decimal places)

Quiz1-2
Dolly has a limited access with Cole Company’s records but wants to know a little bit more about the
company. Ignoring taxes, the company’s net income for variable costing is at P76,750. Goods are sold at
P15 per unit. Beginning inventory for the month is at P25,625 or 2,500 units. As of end of the month,
quantity of inventory in stock decreased by 1,000 units. Variable Cost ratio remained at 55% of which
none pertains to General and Administrative costs, and Fixed costs are still P200,000, 45% of which
pertains to manufacturing. Determine the following:
a. Sales for the month
b. Gross Profit for the month
c. Net Income under absorption costing
d. Units produced last month

Quiz1-3
l'écureuil company thinks that the costs they incur have a certain relationship with machine hours, but
there are fixed and variable components on these costs that they want to analyze. The following has
been the movement of this cost per month:
(amount in millions)
Month Machine hours Cost
January 5.0000 28.0000
February 6.2000 31.7800
March 4.6000 26.7400
April 3.4000 22.9600
May 4.2000 25.4800
June 4.6000 26.7400
(for your answers, please do not convert to millions).Compute using SIX decimal places. All Items must
be rounded off up to FOUR DECIMAL PLACES. If your answer is 20.15, you must input 20.15, but if your
answer is 20.123456789, you must round it off to 20.1235.
a. Using Least squares regression, what equations can you derrive from the given? (2 formulas)
"EY" Equation "EXY" Equation
input formulas WITH decimal places, example: 100 = 55.12a + 330.1234b (not 100.0000 = 55.1200a +
330.1234b), and write the numercial coefficents of the expression first (100b, not b100). INPUT THE
FORMULA WITHOUT SPACES and CAPITAL LETTERS ONLY.
b. Using Least squares regression, how much would be the variable cost per unit? (round off up to FOUR
decimal places)
c. Using Least squares regression, what is the total fixed cost? (up to FOUR decimal places)
d. Using Least squares regression, what would be the Total Cost formula of the Company?
Quiz1-4
A certain specialty product is continually produced by Max Corp. It has produced 8 batches already. At a
learning curve of 90%, the company computed their total production cost at P174,960 for all of the
previous 8 batches, of which 30% is labor cost, 20% variable overhead and 50% is material cost, and no
allocation for fixed overhead. The variable overhead is allocated using the same cost driver as labor, but
on a different rate.
a. How much is Max expected to incur if they will produce the same quantity previously made?
b. How much is the labor cost for the very first batch produced?
c. How much is the total production cost for the first batch produced?
d. How much variable overhead was incurred on the second batch of production?
*round off your answers to TWO decimal places, and include ".00" in your answers*

Quiz2-1
Moshi Moshi Takoyaki intends to hire two kiosk attendants for the initial franchise that they are
establishing. The owner is torn between two salary schemes to implement. The first one involves a fixed
salary of P5,000 per month for each attendant and a 10% share on the sales. The second scheme carries
a fixed salary of P10,000 with a 2% share on sales. Each takoyaki box sells for P100, with variable costs at
P30, excluding the attendants’ salary, and other fixed costs of P30,000 per month (excluding salary).
a. At what sales quantity (in boxes) would the owner be indifferent as to the salary scheme?
b. What is the net profit before tax on your answer in (a)?

Quiz2-2
Play Place Inc. has been operating for the past 3 months. It wants to determine at what amount of sales
will they earn profit. The Play Place Inc. is a babysitting house that caters to toddlers and preteens. Each
client is charged P60 per hour and they are given free treats each hour which costs P10. No other
variable costs are incurred. The Play Place currently has 2 babysitters which can handle up to 1,500
babysitting hours in total with a salary of P14,000 each month for every babysitter. The place is rented
at P60,000 each month. If they wish to add a babysitter, one sitter is available which can increase
babysitting hours capacity to 2,200. An additional babysitter will further increase capacity at 2,800
hours. However, with 4 babysitters, they may opt to extend the Play Place with an additional rent of
P20,000 each month to increase capacity to 3,400 hours.
a. What is the breakeven point per month?
b. If the Company plans to have P30,000 profit for the month, how many babysitting hours should
they render?
c. How many babysitters should be hired to reach the target profit?

Quiz2-3
Two products are sold in the market. Each product has the same fixed costs but product A has a
contribution margin that is 20% lower than product B. Breakeven point in units of product B is 40% of its
fixed costs. Product A’s breakeven point is 200 units higher than product B. Determine the following:
(use six decimal places for computations and up to four decimal places for answers - unless item should
be rounded to full digits, input as follows: if 4.5, input 4.5 not 4.5000. if 9.123433, input 9.1234)
a. Contribution Margin per unit of Product A
b. Contribution Margin per unit of Product B
c. Total Fixed Costs per product (do not sum up this two)
d. Breakeven Point in units of Product A
e. Breakeven Point in units of Product B