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Answer Key - Problem Sets

The document outlines the calculation of variable and manufacturing overhead costs per unit for different production quantities. It details the components of variable costs totaling PhP 52 per unit and provides total variable costs for specified production levels. Additionally, it calculates total manufacturing overhead and per-unit costs for varying production outputs.

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7 views2 pages

Answer Key - Problem Sets

The document outlines the calculation of variable and manufacturing overhead costs per unit for different production quantities. It details the components of variable costs totaling PhP 52 per unit and provides total variable costs for specified production levels. Additionally, it calculates total manufacturing overhead and per-unit costs for varying production outputs.

Uploaded by

aries.tibar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Q# Units produced Calculation (key step) Result (PhP)

Variable cost per unit


— (DM+DL+Indir. Mat.+Var 15 + 12 + 3 + 2 + 20 = 52 PhP 52 / unit
MOH+Var Sales Comm.)
1 10,000 Variable cost per unit = PhP 52 PhP 52 / unit
2 18,000 Variable cost per unit = PhP 52 PhP 52 / unit
3 21,000 Total variable costs = 52 × 21,000 PhP 1,092,000
4 11,000 Total variable costs = 52 × 11,000 PhP 572,000
5 19,000 Total MOH = (Var MOH 5×19,000) + Fixed MOH (75,000) = 95,000 + 75,000 PhP 170,000
6 23,000 Total MOH = (5×23,000) + 75,000 = 115,000 + 75,000 PhP 190,000
7 19,000 MOH per unit = 5 + (75,000 ÷ 19,000) = 5 + 3.947368… = 8.947368… PhP 8.95 / unit
8 25,000 MOH per unit = 5 + (75,000 ÷ 25,000) = 5 + 3 = 8 PhP 8.00 / unit

Notes used in table:

 Variable cost per unit components: Direct Materials 15, Direct Labor 12, Indirect Materials 3, Variable MOH 2, Variable Sales
Commissions 20 → total variable per unit = PhP 52.
 Fixed manufacturing overhead total = 5 (per unit at 15,000) × 15,000 = PhP 75,000 (constant within relevant range).
 Variable manufacturing overhead per unit = Indirect materials (3) + Variable MOH (2) = PhP 5.
Exam-style answer key (condensed; show computations + labeled final answers)

Given: Variable per-unit = 15 + 12 + 3 + 2 + 20 = PhP 52.


Fixed MOH total = 5 × 15,000 = PhP 75,000.
Variable MOH per unit = 3 + 2 = PhP 5.

1. Variable cost per unit at 10,000 units = PhP 52 per unit.


2. Variable cost per unit at 18,000 units = PhP 52 per unit.
3. Total variable costs at 21,000 units = 52 × 21,000 = PhP 1,092,000.
4. Total variable costs at 11,000 units = 52 × 11,000 = PhP 572,000.
5. Total manufacturing overhead at 19,000 units = (5 × 19,000) + 75,000 = 95,000 + 75,000
= PhP 170,000.
6. Total manufacturing overhead at 23,000 units = (5 × 23,000) + 75,000 = 115,000 +
75,000 = PhP 190,000.
7. Per-unit manufacturing overhead at 19,000 units = 5 + (75,000 ÷ 19,000) = 5 +
3.947368… = PhP 8.95 per unit (rounded to 2 decimals).
8. Per-unit manufacturing overhead at 25,000 units = 5 + (75,000 ÷ 25,000) = 5 + 3 = PhP
8.00 per unit.

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