BA 185

Problems:

1. Data from the duplicating department for the last 2 months are as follows:
Duplicating

Number of Copies Department’s costs

January 100,000 P8,500.

February 150,000 9,500.
What is the total variable costs at 110,000 copies? ______________

2. In the ABC Co. a maintenance cost is partly fixed and partly variable in nature. At the low level
of activity (150 DLH)maintenance costs total P2,100. AT high level of activity (270 DLH)
maintenance costs are P3,000. Using the High Low method, what is the variable maintenance
cost per unit and the total fixed maintenance cost? ______________ _____________

3. The controller of James, Inc. has requested you to estimate the manufacturing supplies needed
for the plant for the month of July when production is expected to be 470,000 units to meet the
ending inventory requirements and sales of 475,000 units. The company’s analyst has the
following actual data for the last 3 months:
Production in units Mfg Supples
March 450,000 units P723,060
April 540,000 853,560
May 480,000 766,560
Using these data and the high-low method to develop a cost accounting equation, the estimate
Of needed manufacturing supplies for July would be ___________________?