MAC 1 - MLE02

1. D
2. D
3. B
4. D
5. C
6. C
7. A - (5148-1588)/(2406-124)
8. C - 1588 – (124 x 1.56)
9. A - use x1 = 5250 x2 = 9750
10-12 CBA - Use Eynabex and ExyExabex^2
13. D – (62000-2800)+370000-(59000-3600)
14. A – 211050 + 2100000 – 226800
15. B – (14700-9450) + (926100-903000)
16. D
17. C – FG,end = Total Goods sold – FG,beg – Total Goods manufactured = 60 – 25 – 100

18. Looking at the data below. Compute for the per unit cost of producing 2,200 units provided that the company currently produces
2,000 units per month. The machine has normal capacity for 2,500 units. The following per unit data apply for sales to regular
customers:
Direct materials P 600
Direct manufacturing labor 170
Variable manufacturing overhead 180
Fixed manufacturing overhead 880
a. P 1,950
b. P 1,750
c. P 1,830
d. P 1,663.64

Solu on:
Variable cost per unit: 600 + 170 + 180 = 950
Fixed cost per unit: 880 x 2,500 = 2,200,000 / 2,200 = 1,000
Per unit cost: 1,950

19. Looking at the data below. Compute for the total manufacturing cost of producing 3,400 units provided that the company currently
produces 3,500 units per month. The machine has full capacity for 5,000 units and normal capacity of 60%. The following per unit data
apply for sales to regular customers:
Direct materials P 500
Direct manufacturing labor 250
Variable manufacturing overhead 200
Fixed manufacturing overhead 600
a. P 6,230,000
b. P 5,330,000
c. P 5,030,000
d. P 5,270,000

Solu on:
Variable cost: 3,400 x (500 + 250 + 200) = 3,230,000
Fixed cost: 5,000 x 60% = 3,000 x 600 = 1,800,000
Total manufacturing cost: 5,030,000

20. All of the following are irrelevant in compu ng the mixed cost linear equa on using high-low method except:
a. b = (x2 – x1) / (y2 – y1)
b. ∑y = na + b∑x
c. independent variable
d. Both a and c
21. Which of the following data may not considered in the computa on of mixed cost linear equa on using high-low method?
a. highest ac vity level
b. lowest ac vity level
c. outlier
d. All of the above

22. The total run of the 2 best representa ves in the sca ergraph is 3,000 units, while the total rise is P 500, compute for the slope.
a. P 6
b. P 0.17
c. P 5
d. Cannot be determined using the available data.

Solu on:
P 500 / 3,000 = 0.17

23. The points nearest to the drawn regression line are (800, P7,000) and (600, P4,500). Find the unit cost of 1,000 units provided that
the cost that cuts through the y-axis is at P2,000.
a. P 11.5
b. P 14.5
c. P 12.5
d. None of the above
Solu on:
b = (7,000 – 4,500) / (800 – 600) = 12.5
y = 2,000 + 12.5x
y = 2,000 + 12.5 (1,000)
y = 14,500
14,500 / 1,000 = 14.5

24. The company have found out that their net income is P 5,000 under tradi onal approach income statement while their net income
under contribu on approach income is P 4,000. What is/are the possible reason/s that this happened?
a. Their produc on is 1,000 units while sales is 2,000 units.
b. Their produc on is 3,000 units while sales is 1,500 units.
c. Both a and b
d. None of the above

25. Compute for the net opera ng income of the StrawHat Shipping Company:
Variable cost P 150,000
Fixed cost P 250,000
Contribu on margin P 300,000
a. P 50,000
b. P (100,000)
c. P 100,000
d. None of the above.

Solu on:
CM – FC = NOI
300,000 – 250,000 = 50,000

26. Compute for the sales of the Zoldyck Company:

Variable cost P 400,000
Fixed cost P 100,000
Tax P 75,000
Tax rate 20%
a. P 475,000
b. P 593,750
c. P 800,000
d. P 875,000

Solu on:
75,000 / 0.2 = 375,000 + 100,000 + 400,000 = 875,000
27. All of the following can be classified as indirect materials of a table except:
a. nails
b. wood
c. sandpaper
d. None of the above

28. Not all of the following are classified as manufacturing overhead. Which is it?
a. Indirect labor
b. Indirect materials
c. Factory
d. All of the above are part of factory overhead.

29. Which of the following is the basis for the crea on of produc on budget?
a. ending inventory
b. beginning inventory
c. sales budget
d. Both a and b

30. To whom purchase invoice is/are given?

a. Receiving department
b. Vendor
c. Produc on department
d. Both a and b

31. Compute for the addi onal lead me of Death Note Company:
Average lead me 5 days
Safety stock 2,000 units
Annual usage 200,000 units
Working days 200 days
a. 10
b. 9
c. 7
d. 5

Solu on:
Average daily usage = 200,000 / 200 = 1,000
ROP = (1,000 x 5) + 2,000 = 7,000
7,000 = (x – 5) x 1,000
7,000 = 1,000x – 5,000
12,000 = 1,000x
x = 12
Maximum lead me – Average lead me = Addi onal lead me
12 – 5 = 7

32. Compute for the maximum daily usage of Shinichi Edogowa Company:
Average lead me 8 days
Safety stock 1,000 units
Annual usage 300,000 units
Working days 150 days
a. 4,125
b. 4,000
c. 17,000
d. 2,000

Solu on:
Average daily usage = 200,000 / 200 = 2,000
ROP = (2,000 x 8) + 1,000 = 17,000
17,000 = (x – 2,000) x 8
17,000 = 8x – 16,000
33,000 = 8x
x = 4,125
33. Find the total inventoriable cost of Mikasa Company under EOQ.
Annual usage 5,000 units
Carrying cost per unit P 100
Cost per order P 400
Stock out cost P 4,000
Quality cost P 3,000
Purchasing cost per unit P 20
a. P 27,000
b. P 30,000
c. P 37,000
d. None of the above

Solu on:
EOQ = √[(2 x 400 x 5,000) / 100) = 200
Purchasing cost = 5,000 x 20 = 100,000
Carrying cost = 200 / 2 x 100 = 10,000
Ordering cost = 5,000 / 200 x 400 = 10,000
Total inventoriable cost = Purchasing cost + Ordering cost + Carrying cost + Stockout cost + Quality cost = 127,000

34. All of the following makes the most sense by using the backflush accoun ng except:
a. Just-in- me companies
b. Ac vity-based cos ng companies
c. Tradi onal companies
d. All of the above

35. Which of the following uses backflush journal entries?

a. Direct materials
b. Conversion costs
c. Factory overhead
d. All of the following uses backflush journal entries