07 Responsibility Accounting C ans

07 Responsibility Accounting C ans - Responsibility...

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Responsibility Accounting and Transfer Pricing Suggested Answers and Solutions (C. Variable Costing & Segmented Reporting) C. VARIABLE COSTING AND SEGMENTAL REPORTING THEORIES: 1. D 11. C 21. A 31. D 2. A 12. A 22. A 32. B 3. A 13. B 23. A 33. C 4. B 14. A 24. D 34. A 5. D 15. A 25. D 6. D 16. B 26. D 7. D 17. A 27. B 8. B 18. A 28. B 9. B 19. D 29. B 10. A 20. A 30. B PROBLEMS: 1. C 6. C 11. A 16. A 2. C 7. B 12. B 17. B 3. B 8. A 13. D 4. C 9. C 14. A 5. C 10. A 15. C SOLUTIONS: 1. Answer: C Direct materials P10,000 Direct labor 20,000 Variable overhead 5,000 Total variable product cost P35,000 Variable unit cost (P35,000 ÷ 10,000) P3.50 Add Fixed overhead per unit (P9,000 ÷ 10,000) 0.90 Absorption unit cost P4.40 172
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Responsibility Accounting and Transfer Pricing Suggested Answers and Solutions (C. Variable Costing & Segmented Reporting) 2. Answer: C Direct materials P 8 Direct labor 10 Variable overhead 2 Total unit cost- variable costing P20 Value of ending inventory (5,000 x P20) P100,000 3. Answer: B Fixed overhead rate per unit: P12 – P8 P4 Difference in income: 2,000 x P4 P8,000 During the current year, the company’s production equaled the budgeted. The inventory increased.
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  • Fall '14
  • Myrtle
  • gross margin, 30%, 30 percent, 46%, C. Variable

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