Accounting Questions Here...

[marcusjake1983]

Hi All. Need help solutions on this problem.

Question: The Mulvey Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost.

C=Php80,000 + Php12 M
If:
C= Monthly manufacturing overhead cost.
M= Machine Hours

The standard error of the estimate of the regression is Php6,000. The standard time required to manufacture one six-unit case of of Mulvey's single product is 4 machine hours. Mulvey applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases.

Question 1:

Mulvey's estimated variable manufacturing overhead cost for a month in which scheduled overhead is 5,000 cases will be.

A. Php80,000
B. Php320,000
C. Php240,000
D. Php360,000

Ans: C Php240,000

Question 2:

Mulvey's predetermined fixed manufacturing overhead rate would be

A. Php1.60 per machine hour
B. Php4.00 per machine hour
C. Php1.20 per machine hour
D. Php4.80 per machine hour

Ans: D. Php4.80 per machine hour

Tnx

[ansonkeh]

Hi All. Need help solutions on this problem.

Question: The Mulvey Company derived the following cost relationship from a regression analysis of its monthly manufacturing overhead cost.

C=Php80,000 + Php12 M
If:
C= Monthly manufacturing overhead cost.
M= Machine Hours

The standard error of the estimate of the regression is Php6,000. The standard time required to manufacture one six-unit case of of Mulvey's single product is 4 machine hours. Mulvey applies manufacturing overhead to production on the basis of machine hours, and its normal annual production is 50,000 cases.

Question 1:

Mulvey's estimated variable manufacturing overhead cost for a month in which scheduled overhead is 5,000 cases will be.

A. Php80,000
B. Php320,000
C. Php240,000
D. Php360,000

Ans: C Php240,000

Question 2:

Mulvey's predetermined fixed manufacturing overhead rate would be

A. Php1.60 per machine hour
B. Php4.00 per machine hour
C. Php1.20 per machine hour
D. Php4.80 per machine hour

Ans: D. Php4.80 per machine hour

Tnx

Solution Question #1

Qty 5,000 cases
Machine Hours per case x 4 hours per case
Total 20,0000 hours
Unit Variable Cost xP12
Total Variable Cost P240,000
========

Solution Question #2

Monthly Fixed Cost P80,000
Monthly Budgeted hours 16,666.67 [(50,000/12) x 4]
Fixed Cost per unit P4.80
========

Hope this solution helps.

[marcusjake1983]

Thanks Sir Anson.

[fliwie rei]

sorry guys i need your help... Mr. Larry Tan pls help me.
this is the situation. 3 partners nag invest ng 300,000 for example show money lang with equal share (100k each) and then gusto nilang i-withdraw pera nila at itira ang 60,000 as initial capital. let say partner A took 80k also for partner B and C. ano po bang tamang entry dito. thanks in advance. fliwie

[fliwie rei]

this is my ym id... i really needs help. i'll be online today just to wait for someone who's willing to help. salamat po kabayan.... fliwie_rei_07

[Larry Tan]

Just reverse P80,000 of the initial entry, di ba?

[borchu]

A, Capital-------80,000
B, Capital-------80,000
C, Capital-------80,000
Cash----------------240,000


Since yung intention nila is to make the capital 60k, capital ang idedebit natin.

Effect niya in Capital Statement

Total Capital--------------300,000
Less: A,Capital----80,000
B,Capital----80,000
C,Capital----80,000 240,000
Total Capital,udpated------60,000

I hope this helps

[fliwie rei]

salamat mo sir brochu and sir larry.....

the partners want to show the 300k in the book after the withdrawals.

Advances to owners ----- 240k
cash ---------------------------240k

from mr. larry...

salamat po sa inyong dalawa.

fliwie

[20jerome09]

Topic: Provision
Subject: FA2

Hello poh. Eto nanaman ako sa di ko maintindihan. Pakipaliwanag poh itong sentence na ito. Illustrations poh if meron. =)

"A provision shall be used only for expenditures for which the provision was originally recognized"

[Larry Tan]

Topic: Provision
Subject: FA2

Hello poh. Eto nanaman ako sa di ko maintindihan. Pakipaliwanag poh itong sentence na ito. Illustrations poh if meron. =)

"A provision shall be used only for expenditures for which the provision was originally recognized"

If a provision (liability) is set up for product warranty, this account can only be debited for payments of product warranty & not for any other expenses.

[20jerome09]

If a provision (liability) is set up for product warranty, this account can only be debited for payments of product warranty & not for any other expenses.

How about if there are many provisions? or if they are of the same type like warranty for TV and warranty for E. fan, these can be mixed?

[Larry Tan]

How about if there are many provisions? or if they are of the same type like warranty for TV and warranty for E. fan, these can be mixed?

I think that will depend it they belong to the same business segment. Judgment call na yan when it comes to practice.

[20jerome09]

Salamat poh Sir Larry Tan. Saka ngayon palang mag papasalamat na ako sa mga sasagot sa mga future questions ko para di redundant at mas matuunan yung mga questions. Maganda itong topic na ito dahil natututo ako sa tanong ko at sa tanong ng ibang tao na nababasa ko dito. Nakakatulong kayo sa pag unlad ng ating bansa (di ko na iispecify kung paano, obvious na yun). More power poh.

[meton]

waahh how i miss dolving problems.. di ko na yan nagagamit sa real corporate world.

[Larry Tan]

Question for the day: Topic - Cost-Volume-Profit Relationship

The president of Milliard industries has developed the following income statement showing expected percentage results at sales of $800,000.
Sales 100%
Cost of sales 60%
Gross margin 40%
Other expenses 30%
Income 10%
The president tells you that cost of sales is all variable and that the only other variable cost is commissions, which are 10% of sales, and are included in the “other expenses” category. The president wants a $120,000 profit. If expected unit volume will remain the same, by what percentage must the company increase its selling price to achieve the goal? Assume the per-unit cost of sales remains constant.

Answer: 5.55%

Source: Louderback & Holmen, 10th edition.

[singagski]

Sir Larry tlaga po bang merong .55%?..saktong 5% kasi nakukuha koh

[Larry Tan]

Sir Larry tlaga po bang merong .55%?..saktong 5% kasi nakukuha koh

Talagang 5.55% ang sagot. Yung 5% wrong answer yan. Check mo uli ang given. One of the variable costs, varies directly with sales.

[thomasianCPA09]

Sales = [280000(FC + Profit) + 480000 (VC remained unchanged)] / .90 (% covering all costs excluding 10% commission expense)
Sales = 844,444.44
44,444 / 800000 = 0.0555

Tama ba?

[Larry Tan]

Sales = [280000(FC + Profit) + 480000 (VC remained unchanged)] / .90 (% covering all costs excluding 10% commission expense)
Sales = 844,444.44
44,444 / 800000 = 0.0555

Tama ba?

Correct ka dyan.

[singagski]

ahh...di ko napansin na per unit cost of sale lang *** *** constant...haha...