Name:___________________________ Score:___ _____

AVOID CHEATING. It is better to fail than to fool yourself. Answer the best way you can. You will reap
the rewards for that. BE STICK TO ONE. It would be better if you choose the answer by avoiding
erasures. LEARN TO LET GO. Do not dwell too much time in one item. Move to the next and go back
for it later.

1. A position to which decision-making authority has been delegated within the chain of command from
senior managers to front line production or service employees is called.
A. line position.
B. staff position.
C. Both a and b
D. None of the above.

2. Provisions in this section of Ethical Standards for Management Accountants forbid management
accountants to act on, or even appear to act on, confidential information they acquire in doing their
work, except when authorized or when legally obligated to do so.
A. Competence
B. Confidentiality
C. Integrity
D. Objectivity

3. If the total materials variance (actual cost of materials used compared with the standard cost of the
standard amount of materials required) for a given operation is favorable, why must this variance be
further evaluated as to price and usage?
a. There is no need to further evaluate the total materials variance it is favorable
b. B. Financial reporting standards require that all variances be analyzed in three stages
c. All variances must appear in the annual report to equity owners for proper disclosure
d. To allow management to evaluate the efficiency of the purchasing and production functions

Oli Garch, Inc. analyzes manufacturing overhead in the production of its only one product, CD. The
following set of information applies to the month of May, 2006:
Budgeted Actual
Unit produced 40,000 38,000
Variable manufacturing overhead P4.00/DLH P16,400
Fixed manufacturing overhead P20/DLH P88,000
Direct labor hours 6min/unit 4,200 hr

4. What is the fixed overhead spending variance?

a. P4,000 F b. P8,000 U c. P8,000 F d.P4,000 U

5. What is the volume variance?

a. P4,000 F b. P8,000 F c. P4,000 U d. P8,000 U

6. How much was the variable overhead spending variance?

a. P 400 F b. P400 U c. P1,200 F d. P1,200 U

7. How much overhead efficiency variance resulted for the month of May?
a. P1,600 F b. P1,600 U c. P 800 F d. P800 U

THE GLORY CORP. has the following budget estimates for its second year of operations:
Projected sales – P3,500,000
Projected net income before tax – 12% of sales
Estimated selling and administrative expenses – 25% of sales
Direct labor and factory overhead are budgeted at 70% of the total manufacturing cost.
Inventories are estimated as follows:
Raw materials Goods in process Finished goods
Beginning P220,000 P250,000 P350,000
Ending 270,000 300,000 420,000

8. The estimated purchases of raw materials would be

a. P697,000 b. P747,500 c. P732,500 d. P967,500

It is budgeting time for Del Co. The following assumptions were agreed upon for the next year after a
strategic planning session which covered a five-year horizon
1. Sales is estimated to be at 70,000 units at its national selling price of P126.00. 75% of total
sales are on credit. 1.5% of net sales is provided for doubtful accounts.
2. Sales discounts are given to various customers at different rates and net to gross ratio is at
93%
3. Mark-up on merchandise is at 45% of invoice cost. Beginning inventory is P80,900 and is
expected to be reduced by P15,000 at the end of the period.
4. Selling and administrative expenses is expected to be 15% of gross sales.
5. Depreciation is computed at P500,000.

9. The projected operating income for the year is

a. P173,802 b. P252,741 c. P252,341 d. P296,841\

10. If a company decreases its total fixed expenses while increasing the variable expense per unit, the
total expense line relative to its previous position on a cost-volume-profit graph will:
A. Shift upward and have a steeper slope
B. Shift upward and have a flatter slope
C. shift downward and have a steeper slope.
D. Shift downward and have a flatter slope

11. A manager is attempting to determine whether a segment of the business should be eliminated.
The focus of attention for this decision should be on
A. sales minus total expenses of the segment.
B. sales minus total direct expenses of the segment.
C. the net income shown on the segment's income statement.
D. sales minus total variable expenses and avoidable fixed expenses of the segment.

The Space X Corp. contemplates the temporary shutdown of its plant facilities in a provincial area which
is economically depressed due to natural disasters. Below are certain manufacturing and selling
expenses.
1. Depreciation 5. Sales commissions
2. Property tax 6. Delivery expenses
3. Interest expense 7. Security of premises
4. Insurance of facilities
12. Which of the following expenses will continue during the shutdown period?
A. Items 1, 2 and 3 only. C. All except 5 and 6.
B. Items 1, 2, 3, 4, 6, and 7 only. D. All expenses in the list.

13. New Company manufactures products N-Lex and S-Lex from a joint process. Product N-Lex has been
allocated P 5,000 of total joint costs of P 40,000 for the 1,000 units produced. N-Lex can be sold at
the split-off point for P 6 pe unit, or it can be processed further with additional costs of P 2,000 and
sold for P 10 per unit. If N-Lex is processed further and sold, the result would be an:
A. Over-all loss of P2000 C. Additional gain of P2,000 from further processing
B. Over-all loss of P 3,000 . D. Additional gain of P 4,000 from further processing
14. Jamine Company has fixed costs of P361,200. At a sales volume of P1,440,000, return on sales is
10%; at a P2,400,000 volume, return on sales is 20%. What is the break-even sales?
A. P900,000 C. P1,032,000
B. P1,204,000 D. P960,000

15. The purchasing manager at Cara Company knows the amount of raw materials required for each
unit of the single product the company manufactures. Which of the following statements best
describes the information the purchasing manager will require to estimate the quantity of raw
materials to purchase?
A. The amount of raw materials on hand at the beginning of the period and the minimum quantity
of raw materials management wishes to have in inventory at the end of the period
B. The amount of raw materials on hand at the beginning of the period, the minimum quantity of
raw materials management wishes to have in inventory at the end of the period, and the
estimated quantity of product the company expects to sell in the period
C. The amount of raw materials on hand at the beginning of the period, the minimum quantity of
raw materials management wishes to have in inventory at the end of the period, and the
estimated quantity of product the company expects to produce in the period
D. The amount of raw materials required to meet the estimated quantity of product the company

16. Which of the following statements is incorrect?

A. MAS is not confined only to such areas as financial accounting, auditing, and tax services.
B. Because the MAS practitioner must be independent, he must not allow the client to participate
in any phase of his engagement.
C. Although MAS extends beyond the traditional accounting services, CPAs in the MS practice are
still bound by the rules of professional ethics in the practice of accounting in general.
D. CPAs provide management services to go around the ethical constraints as mandated by the
Accountancy Act.

17. In an income statement prepared as an internal report using variable costing, variable selling and
administrative expenses would:
A. not be used.
B. be used in the computation of the contribution margin.
C. be used in the computation of net operating income but not in the computation of the
contribution margin.
D. be treated the same as fixed selling and administrative expenses.

18. ECQ Corporation is considering a lockbox system. The bank will charge P 10,000 annually for the
service, which will save the firm approximately P 5,000 in processing costs. The lockbox system will
reduce the float for cash receipts by three days. Assuming the average daily cash receipts of P
100,000, and short-term interest costs of 5%, what is the benefit or loss from adopting the lockbox
system?
A. P 5,000 loss C. P 10,000 benefit
B. P 10,000 loss D. P 5,000 benefit

19. In the cost of quality, which of the following is an example of a “prevention cost”?
A. Cost of inspecting products on the production line by quality inspectors.
B. Labor cost of product designers whose task is to design components that will not break under
extreme temperature conditions.
C. Cost of reworking defective parts detected by the quality assurance group.
D. Cost of parts returned by customers.
Gezil Corporation's records for the year 2023 show the following data:
Net sales (6,000 units) P21,000
Cost of goods manufactured (7,000 units):
Variable 9,450
Fixed 4,725
Operating expenses:
Variable 1,470
Fixed 2,100
There was no finished goods inventory at the beginning of the period. Neither was there any work-in-
process inventory at the beginning and end of the year.

20. Gezil Corporation's finished goods inventory costs at the end of 2023 under both the absorption
and variable costing methods are:
Absorption costing Variable costing
A. P1,350 P2,025
B. 2,535 1,560
C. 2,025 1,350
D. 1,560 2,535

21. Gezil Corporation’s operating income figures during the year under both costing methods were:
Absorption costing Variable costing
A. P5,280 P4,605
B. 11,430 8,850
C. 8,850 11,430
D. 4,605 5,280

22. A variant of fiscal-year budgeting whereby a twelve-month projections into the future is maintained
at all times:
A. Forecasting
B. Zero-based budgeting
C. Continuous budgeting
D. Calendar budgeting

23. Which of the following is true about a firm’s float?

A. A firm strives to minimize the float for both cash receipts and cash disbursements
B. A firm strives to maximize the float for both cash receipts and cash disbursements
C. A firm strives to maximize the float for cash receipts and minimize the float for cash
disbursements.
D. A firm strives to maximize the float for cash disbursements and minimize the float for cash
receipts.

24. To prepare its cash disbursements budget, a company uses information from
A. its balance sheet at the end of the prior period.
B. its purchases budget.
C. its capital budget.
D. all of the above sources.

25. What budgeted amounts appear on the flexible budget?

A. Original budgeted amounts at the static budget activity level
B. Actual costs for the budgeted activity level
 C. Budgeted amounts for the actual activity level achieved
D. Actual costs for the estimated activity level

Information on Uranus’ direct material costs for May is as follows:

Actual quantity of direct materials purchased and used 30,000 lbs.
Actual cost of direct material P84,000
Unfavorable direct materials usage variance P3,000
Standard quantity of direct materials allowed for May production 29,000 lbs.

26. For the month of May, Uranus’ direct materials price variance was:
A. P2,800 favorable C. P6,000 unfavorable
B. b. P2,800 unfavorable D. P6,000 favorable

27. Hanlon Company has recorded the following data regarding its inventories. To manufacture product
MPC1, it takes 4 hours to move raw materials to the work-in-process area. Transforming the raw
materials into finished goods takes three production steps of 3 hours each. The finished goods are
then temporarily stored in a storage area for 10 hours. Finally, they are inspected which takes 4
hours. Calculate the manufacturing cycle efficiency for product MPC1.
A. 52.94% C. 14.29%
B. 48.15% D. 33.33%

28. The coefficient of determination is

A. a measure of the variability of actual costs around the cost-estimating equation.
B. used to construct probability intervals for cost estimates.
a standardized measure of the degree to which two variables move together.
C. a measure of the percent variation in the dependent variable that is explained by an
independent variable.

Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last
year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit.
The company needed to sell 20,000 shirts to break even. The net income last year was P5,040.
Donnelly’s expectation for the coming year includes the following:
The sales price of the T-shirts will be P9
Variable cost to manufacture will increase by one-third
Fixed costs will increase by 10%
The income tax rate of 40% will be unchanged

29. The selling price that would maintain the same contribution margin rate as last year is
A. P9.00 C. P8.25
B. P10.00 D. P9.75

30. Sari-Sari Grocery is currently open only on Monday to Saturday. It is considering opening on
Sundays. The annual incremental costs of Sunday opening is estimated at P124,800. Its gross
margin is 20%. It estimates that 60% of Sunday sales to customers would be on other days if its
stores were not open on Sundays. The Sunday sales that would be necessary for Sari-sari to attain
the same weekly operating income is
A. P19,500. C. P30,000.
B. P29,250. D. P20,000.
31. Which of the following transactions does not change the current ratio and does not change the total
current assets?
A. A cash advance is made to a divisional office
B. A cash dividend is declared
C. Short-term notes payable are retired with cash
D. Equipment in purchased with a three-year not and a 10 percent cash down payment

32. ABC, Inc. is operating at full capacity with a sales level of P14M and fixed assets of P7M. What is
the required addition to fixed assets if sales are to increase by 10 percent?
A. P350,000 C. P140,000
B. P700,000 D. P280,000

33. The standard direct materials cost to produce a unit of a product is four meters of materials at
₱2.50 per meter. During June, 4,200 meters of materials costing ₱10,080 were purchased and used
to produce 1,000 units of the product. What was the materials price variance for June?
A. ₱480 unfavorable C. ₱400 favorable
B. ₱ 80 unfavorable D. ₱420 favorable

34. The determination of a cost as either direct or indirect depends upon the:
A. accounting system C. cost object chosen
B. allocation system D. cost tracing system

35. A company has a break-even point of 200,000 units and earns a ₱100,000 profit at sales of
250,000 units. Which of the following is true?
A. Fixed costs are ₱400,000.
B. Total contribution margin at 200,000 units is ₱100,000.
C. Profit at sales of 300,000 units is ₱120,000.
D. Selling price per unit is ₱2.

36. Which of the following people is LEAST likely to use management accounting information?
A. the controller
B. a shareholder evaluating a stock investment
C. the treasurer
D. an assembly department supervisor

37. Which of the following is false?

A. Products, services, departments, and customers may be cost objects.
B. Costs are accounted for in two basic stages: assignment followed by accumulation.
C. Actual costs and historical costs are two different terms referring to the same thing.
D. Accountants define a cost as a resource to be sacrificed to achieve a specific objective.

38. Management accounting is considered successful when it:

A. helps creditors evaluate the company's performance
B. helps managers improve their decisions
C. is accurate
D. is relevant and reported annually

39. Which of the following items is NOT an assumption of CVP analysis?

A. Total costs can be divided into a fixed component and a component that is variable with respect
to the level of output.
 B. When graphed, total costs curve upward.
C. The unit-selling price is known and constant.
D. All revenues and costs can be added and compared without taking into account the time value
of money.

40. Helping Hands is a nonprofit organization that supplies electric fans during the summer for
individuals in need. Fixed costs are ₱200,000. The fans cost ₱20.00 each. The organization has a
budgeted appropriation of ₱480,000. How many people can receive a fan during the summer?
A. 12,000 people C. 24,000 people
B. 14,000 people D. 34,000 people

A company has the following information for the current year:

Beginning fixed manufacturing overhead in inventory ₱95,000
Fixed manufacturing overhead in production 375,000
Ending fixed manufacturing overhead in inventory 25,000
Beginning variable manufacturing overhead in inventory ₱10,000
Variable manufacturing overhead in production 50,000
Ending variable manufacturing overhead in inventory 15,000

41. What is the difference between operating incomes under absorption costing and variable costing?
A. ₱70,000 C. ₱40,000
B. ₱50,000 D. ₱5,000

42. Which of the following is a disadvantage of a focus on return on investment?

A. It can encourage managers to focus on cost cutting measures
B. It can encourage managers to cut inventories and reduce overall investment
C. It can encourage managers to focus on the long run at the expense of the short run
D. It can produce a narrow focus on divisional profitability at the expense of profitability for the
overall firm
43. A company obtaining short-term financing with trade credit will pay a higher percentage financing
cost, everything else being equal, when the
A. Discount percentage is lower
B. Items purchased have a higher price
C. Items purchased have a lower price
D. Supplier offers a longer discount period

44. A firm with a cash conversion cycle of 175 days can stretch its average payment period from 30
days to 45 days. This will result in a (an)
A. Increase of 15 days in the cash conversion cycle
B. Decrease of 15 days in the cash conversion cycle
C. Increase of 30 days in the cash conversion cycle
D. Decrease of 30 days in the cash conversion cycle

45. Laguna Company has been offered trade credit terms of 3/15, net 45. The firm does not take
advantage of the discount, and it pays the account after 67 days. Using a 365-day year, what is the
nominal cost of not taking the discount?
A. 18.20% C. 23.48%
B. 21.71% D. 26.45%
46. Compared to other firms in the industry, a company that maintains a conservative working capital
policy will tend to have a
A. Higher total asset turnover.
B. Greater percentage of short-term financing.
C. Higher ratio of current assets to fixed assets.
D. Greater risk of needing to sell current assets to repay debt.

47. The economic order quantity (EOQ) formula can be adapted in order for a firm to determine the
optimal mix between cash and marketable securities. The EOQ model assumes all of the following
except
A. Cash flow requirements are random.
B. The total demand for cash is known with certainty.
C. An opportunity cost is associated with holding cash, beginning with the first dollar.
D. The cost of a transaction is independent of the dollar amount of the transaction and interest
rates are constant over the short run.

48. A high turnover of accounts receivable, which implies a very short days-sales outstanding, could
indicate that the firm
A. Offers small discounts.
B. Has a relaxed (lenient) credit policy.
C. Has an inefficient credit and collection department.
D. Uses a lockbox system, synchronizes cash flows, and has short credit terms.

49. Which of the following inventory items would be the most frequently reviewed in an ABC inventory
control system?
A. Expensive, frequently used, high stock-out cost items with long lead time.
B. Expensive, frequently used, low stock-out cost items with long lead times.
C. Inexpensive, frequently used, high stock-out cost items with long lead time.
D. Expensive, frequently used, high stock-out cost items with short lead times.

50. The underlying philosophy of “just-in-time” inventory system is that

A. The quantities of most stock items are subject to definable limits.
B. It is a quest toward continuous improvement in the environmental conditions that necessitates
inventories.
C. It is impractical to give equal attention to all stock items, hence the need to classify and rank
them according to their cost significance.
D. The status of quantities on hand must be periodically reviewed where high-value items or
critical items are examined more frequently than low-cost or non-critical items.

51. In the Economic Order Quantity (EOQ) model, some of the underlying assumptions are
A. Constant demand, constant ordering cost, constant carrying cost, unlimited production and
inventory capacity.
B. Limited production capacity, declining demand, constant ordering cost, constant carrying cost,
and unlimited inventory capacity.
C. Increasing demand, limited production capacity, increasing ordering cost, increasing carrying
cost, and limited inventory capacity.
D. Unlimited production capacity, declining demand, decreasing ordering cost, decreasing carrying
cost, and unlimited inventory capacity.
52. Jarrett Enterprises is considering whether to pursue a restricted or relaxed current asset
investment policy. The firm’s annual sales are $400,000; its fixed assets are $100,000; debt and
equity are each 50 percent of total assets. EBIT is $36,000, the interest rate on the firm’s debt is
10 percent, and the firm’s tax rate is 40 percent. With a restricted policy, current assets will be 15
percent of sales. Under a relaxed policy, current assets will be 25 percent of sales. What is the
difference in the projected ROEs between the restricted and relaxed policies?
A. 1.6% C. 5.4%
B. 3.8% D. 6.2%

53. Slippers Mart has sales of P3 million. Its credit period and average collection period are both 30
days and 1% of its sales end as bad debts. The general manager intends to extend the credit
period to 45 days which will increase sales by P300,000. However, bad debts losses on the
incremental sales would be 3%. Costs of products and related expenses amount to 40% exclusive
of the cost of carrying receivables of 15% and bad debts expenses. Assuming 360 days a year, the
change in policy would result to incremental investment in receivables of
A. P9,750. C. P65,000.
B. P24,704. D. P701,573

54. Marita works for a local ceramics company. She just completed her accountancy degree and
learned the EOQ model in one of her subjects. She suggested to her employer to adopt it. The
company sells 20,000 pieces of specialty ceramic items each year. Traditionally, they have
produced these items four times a year, making 5,000 pieces at a time. They carry no safety stock
as customers do not mind waiting for orders. The average piece of ceramic items costs P400 to
make and costs the company P20 to carry in inventory for a year. The set up costs for each
production run total P80. The company should
A. Adopt EOQ due to savings of P35,675.
B. Adopt EOQ due to savings of P42,320.
C. Continue the existing system due to P38,950 advantage.
D. Continue the existing system due to P41,820 advantage.

55. DF Tires Unlimited is a business enterprise located in the city of Cagayan de Oro. The market price
per unit is P3,000. Since Cagayan de Oro is a very progressive rural place, the business sells an
average of 36,000 tires annually. Based on a company study covering the last five years of its
operation, it was found out that annual carrying cost per tire is P5.00 and the ordering cost is P100
per order. The store is open 7 days a week (which includes Sundays and holidays). The delivery
time per order (tires are ordered from Manila) is 5 days. Since it normally takes time before an
order is placed, filled up and delivered, the manager has decided to keep a safety stock of 3,000
tires which is equivalent to a month’s sales. The average inventory is
A. 1,200 tires C. 3,493 tires
B. 3,000 tires D. 3,600 tires

56. Vera Cruz Corporation seeks to determine the quantity of safety stock for product ST that they
should maintain that will result in the lowest cost to the company. Each stockout will cost P600
and the carrying cost of each unit of safety stock will be P8. Product ST will be ordered five times a
year. Which of the following will produce the lowest cost?
A. A safety stock of 15 units which is associated with a 35% probability of running out of stock
during an order period.
B. A safety stock of 25 units which is associated with a 25% probability of running out of stock
during an order period.
 C. A safety stock of 35 units which is associated with a 10% probability of running out of stock
during an order period.
D. A safety stock of 75 units associated with a 5% probability of running out of stock during an
order period.
57. Which of these assertions refer to responsibility accounting?
1. Costs and revenues are identified with individuals for better control and performance appraisal.
2. Performance reports under this concept includes variances of actual amounts versus plan.
3. Third parties who are external users are the main recipients of information.
4. Only expenses which are directly under the control of managers should ideally be charged to
them.
A. Assertions 1 and 2 only. C. Assertions 1, 2 and 4 only.
B. Assertions 1 and 4 only. D. All four assertions.

58. Which of these are among the qualities of a good report under the concept of responsibility
accounting?
1. It should be consistent in form and content for each issue.
2. It should be prompt, timely and regularly issued.
3. It should easily be understood by users as to the contents, their significance and how to use
them.
4. It should be able to pinpoint who is to blame as a pre-requisite to explain variances.
5. It should highlight efficiencies and inefficiencies.
6. It should be comparative and analytical.
7. It should be comprehensive as to include all details that can possibly be contained in the report.

A. All except 4 and 7. C. Statements 1, 2, 3, 4 and 7 only.

B. All except 4, 5 and 6. D. All seven statements.

59. A firm prepared a segmented income statement that included the following data for its suburban
marketing segment:
Fixed costs controllable by the suburban marketing segment manager $150,000
Fixed suburban marketing costs controllable by corporate management $250,000
Fixed manufacturing costs allocated to the suburban marketing segment $110,000
Variable manufacturing costs $200,000
Variable selling costs $100,000
Variable administrative costs $130,000
Net sales $950,000
The best measure of the economic performance of the suburban marketing segment is:
A. $10,000 C. $370,000
B. $120,000 D. $520,000

Dzyubenko Co. reported these data at year-end:

Pre-tax operating income $4,000,000
Current assets 4,000,000
Long-term assets 16,000,000
Current liabilities 2,000,000
Long-term liabilities 5,000,000

The long-term debt has an interest rate of 8%, and its fair value equaled its book value at year-end. The
fair value of the equity capital is $2 million greater than its book value. Dzyubenko’s income tax rate is
25%, and its cost of equity capital is 10%.
60. What is the weighted-average cost of capital (WACC) to be used in the economic value added (EVA)
calculation?
A. 8.0% C. 9%
B. 8.89% D. 10%

61. The EVA is

A. $1,380,000 C. $1,830,000
B. $1,620,000 D. $3,000,000

The First Division of Furrow Company produces Part 1 that is used by OEN’s as a key part in their
products. Costs and sales data of Part 1 are as follows:
Selling price per unit P100
Variable cost per unit 60
Fixed cost per unit (Based on 40,000 units capacity per annum) 24

Furrow Company’s Second Division is introducing a new product that will use Part 1. An outside supplier
has quoted Second Division a price of P96 per unit. This represents the usual P100 price less a quantity
discount due to the large number of Second Division’s requirement.

62. If the Second Division would buy 15,000 units of Part 1 from the First Division, the effect on the
corporate profits would be
A. Reduce by P60,000. C. Increase by P240,000.
B. Increase by P210,000. D. Increase by P1,500,000.

The following information has been gathered by the Budget Director of the Kareton Company, another
outfit managed by the Masugid Company. The firm manufactures and sells only one product. The selling
price during the coming month is expected to be the prevailing price of P5 per unit. Expected sales
during the month is a total of 75,000 units of finished goods. Finished goods expected to be on hand at
the end of the month total 50,000 units. Finished goods expected to be on hand at the beginning of he
month total 42,000 units.
▪ Direct labor cost is P3.00 per hour. One-fourth an hour of direct labor is required to manufacture
each unit of finished product.
▪ Factory overhead is applied to work-in-process on the basis of direct labor hours. Variable factory
expenses at the planned level of operations is expected to amount to P33,200; fixed overhead is
expected to amount to P99,600.
▪ The raw materials expected to be on hand at the beginning of the month total 5,000 gallons. Only
one kind of raw material is used to produce the finished goods. One and one-half gallons of raw
material are needed to manufacture each unit of finished product. Raw materials are expected
to cost P0.18 per gallon during the coming month, its prevailing cost. Raw materials expected to
be on hand at the end of the month total 8,000 gallons.
▪ Variable administrative and selling expenses is P1.00 per unit.
▪ In assisting the company to formulate the budget, you determined the following budget
parameters.

63. Budgeted cost of raw materials to be used in production is

A. P8,910 C. P22,410
B. P14,940 D. P124,500

64. Budgeted raw materials purchases cost is

A. P22,410 C. P23,760
B. P22,950 D. P124,500

65. Budgeted direct labor is

A. P20,750 C. P62,250
B. P33,200 D. P83,000
66. Variable overhead cost per direct labor hour is
A. P1.60 C. P4.80
B. P1.80 D. P6.40

67. Fixed overhead cost per direct labor hour is

A. P1.60 C. P4.80
B. P1.80 D. P6.40

68. Budgeted contribution margin is

A. P1.80 C. P3.40
B. P2.58 D. P5.00

69. Budgeted cost of goods sold (full cost) is

A. P76,500 C. P196,500
B. P96,500 D. P304,000

70. Net profit before tax is

A. P53,000 C. P178,500
B. P103,500 D. P249,500