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What is the company degree of operating leverage

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Reference no: EM133185086

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Q1. The following are ABC's balances for last month: sales, P2 million; variable expenses, P1.4 million; fixed expenses, P360,000. The company has no beginning and ending inventories. A total of 40,000 units were produced and sold last month. What is the company's degree of operating leverage?

Q2. Phoebe Corporation uses a standard cost system. Direct labor information for product B for the month of September is as follows:

Standard rate P6.10 per hour

Actual rate paid P6.00 per hour

Standard hours allowed for actual production 1,500 hours

Labor efficiency variance P 600 unfavorable

What is the actual hours worked?

Reference no: EM133185086

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