Reference no: EM132907269
Questions -
Q1. Pharma Corporation produces a single product. Last year, the company had net operating income of P40,000 using variable costing. Beginning and ending inventories were 13,000 units and 18,000 units, respectively. If the fixed manufacturing overhead cost was P1.60 per unit, the net operating income using absorption costing would be?
Q2. A project has a NPV of 30,000 when the cut off rate is 10%. The annual cash flows are 41,010 on an investment of 100,000. The profitability index for this project is?
Q3. The MMK Corporation determines the manufacturing cost per order of a raw material is P50. The company expects to use P100,000 of this material in the coming year. Its carrying charge is 10% of inventory.
Determine the Economic Order Quantity in pesos.
Determine the number of times the raw material be ordered in the coming year.
Q4. The following are Gordon Company's direct labor costs:
Standard direct labor hours 30,000
Actual direct labor hours 29,000
Direct labor usage variance-favorable P4,000
Direct labor rate variance-favorable P5,800
Total payroll P110,200
Gordon's standard direct labor rate?
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