1
CHAPTER 7 Multiple Choice Questions – Theor Theoretical etical 1. 2. ". #.
c b b b
5. . 7. $.
b c a %
9. 1!. 11 12.
a c a C
Multiple Choice Questions – Co&putational 1.
'c (
30,000 / 40,000 x P100,000 = P75)!!! 2.
'a(
40% x P20,000 * P1!)!!! ".
'b(
Computer time: (P4,500 x 70%) * P")15! Computer program: (P4,500 - P3,150) + P2,500 * P")$5! #.
'a(
5.
'%(
Seri!e "epartme#t !o$t$: S1
&S1 S1 S1 S2
= = = = =
P27,000 + 20 S2 P27,000 + 2 20 (P1&,000 + 1 10 S1) P27,000 + P3,'00 + 02 S1 P30,'00 P31,224
= = =
P1&,000 + 10 (P31,224) P1&,000 + P3,122 P21,122
ota* $eri!e !o$t a**o!ate" to P2: (40% x P31,224) P31,224) + (50% x P21,122) = P2")!51 .
'%(
30% / 0% x P,000 = P#)5!! 7.
'b(
#"er te $tep meto", te mai#te#a#!e "epartme#t ou*" a**o!ate it$ P1&,700 o. !o$t .ir$t, e!au$e e!au$e it a$ te greate$t tota* !o$t ote tat ot te mai#te#a#!e mai#te#a#!e a#" uti*itie$ uti*itie$ "epartme#t "epartme#t proi"e$ proi"e$ $eri!e $eri!e to te oter $eri!e "epartme "epartme#t #t u$, te !rit !riter erio io# # .or .or .ir$t .ir$t a**o a**o!a !atio tio# # i$ grea greate$ te$tt !o$t, !o$t, #ot #ot grea greate te$t $t #um #umer er o. $eri $eri!e !e "epartme#t
2 $.
'c (
$ "etermi#e" i# o 7, te ai#te#a#!e epartme#t u"get i$ a**o!ate" .ir$t u#"er te $tep meto" meto" u$, u$, P3,740 P3,740 (20% (20% o. P1&,700 P1&,700)) i$ a**o!ate a**o!ate" " to te ti*iti ti*itie$ e$ epartme#t epartme#t o te ti*itie$ ti*itie$ epartme#t epartme#t a$ P12,740 P12,740 (P,000 (P,000 + P3,740) P3,740) to to a**o!ate etee# epartme#t$ a#" 9.
'b(
#"er te re!ipro!a* meto", $imu*ta#eou$ euatio#$ are "ee*ope" to "etermi#e te gro$$ !o$t$ o. ea! $eri!e "epartme#t, ta6i#g i#to a!!ou#t te i#tera!tie e..e!t o. oter $eri!e "epartme#t$ proi"i#g proi"i#g i#ter $eri!e "epartme#t "epartme#t $eri!e or ti*itie$, te !o$t i$ P,000 p*u$ 20% o. te ai#te#a#!e !o$t, 30% o. it$ i** e app*ie" to epartme#t a#" '0% to e 10% tat ae a*rea"8 ee# a$$ig#e" to te te ai#te#a#!e epartme#t i$ re.*e!te" i# te $et o. $imu*ta#eou$ euatio#$ 1!.
'%(
5 E 11.
= = = = = = = *
ai#te#a#!e epartme#t9$ tota* !o$t #gi#eeri#g epartme#t9$ epartme#t9$ tota* !o$t P12,000 + 20 P54,000 + 25 P54,000 + 25 (P12,000 + 20 ) P54,000 + P3,000 + 05 P57,000 P!)!!!
'a(
;ut o. te tota* #gi#eeri#g epartme#t9$ epartme#t9$ !o$t o. P'0,000, P4&,000 i$ a**o!ate" to pro"u!i#g "epartme#t$ o# te a$i$ o. tota* tota* our$ a$ .o**o$: ept : (&00 / 2,000) x P'0,000 = P24,000 ept : (400 / 2,000) x P'0,000 = 12,000 ept C: (400 / 2,000) x P'0,000 = 12,000 Total P#$)!!! 12.
'a(
5 M
= = = = = *
P12,000 P54,000 P12,000 P12,000 P22,&00 P2#)!!!
+ + + +
20 25 20 (P54,000 + 25) P10,&00 = 05
= = = *
P'0,00 P12,000 + 20 P12,000 + P12,000 P2#)!!!
;r: M
3
1".
'a(
1#.
'%(
#"er te "ire!t meto", #o $eri!e "epartme#t !o$t$ are a**o!ate" to a#oter $eri!e "epartme#t u$, tere ou*" e #o mai#te#a#!e !o$t !o$t a**o!ate" to te #gi#eeri#g epartme#t 15.
'c (
200 / 1,200 x P12,000 = P2)!!! 1.
'b(
&00 / 1,'00 x P54,000 = P27)!!! 17.
'c (
400 / 1,'00 x P12,000 = P")!!! 1$.
'c (
200 / 1,'00 x P12,000 = P1)5!! 19.
'%(
#"er te $tep meto", o#!e "epartme#t9$ !o$t ae ee# a**o!ate" to $u$eue#t "epartme#t$, #o rea**o!atio# a!6 to ai#te#a#!e epartme#t epartme#t i$ to e ma"e u$, #o #gi#eeri#g !o$t$ i$ rea**o!ate" to te ai#te#a#!e epartme#t 2!.
'b(
400 / 1,'00 x (P54,000 + P3,000) = P1#)25! 21.
'%(
ai ai#te#a#!e !o$t$: (&00 / 1,'00) x P12 P12,000 = #gi#eeri#g !o$t$: (&00 / 1,'00) x (P54,000 + P3,000) = ota* a**o!ate" to epartme#t 22.
P ',000 2&,500 P"#)5!!
'%(
ota* a!tor8 ai#te#a#!e Co$t ota* Suare ootage
x ari!atio# Suare .ootage o!!upie"
P&2,100 + P'5,000 + P5',100 &&,000 + 72,000
x
&&,000
= P111)7!
4 2".
'a(
x
> o. $$em*8
ota* ire!t aor >our$ P0,000 + P70,000
x
43 4 37,500 = P7!)!!!
5'2,500 + 437,500 2#.
'b(
ota* a!tor8 Ca.eteria Co$t ota* emp*o8ee P&7, P&7,00 000 0 + P1, P1,00 000 0 + P'2, P'2,00 000 0 2&0 + 200 + 12 + & 25.
x
x
o o. emp*o8ee o. a!tor8 ai#te#a#!e
&
= P")$#!
'b(
a!tor8 Ca.eteria !o$t a!tor8 ai#te#a#!e !o$t
P240,000 P203,300
a!tor8 Ca.eteria !o$t a*rea"8 !*o$e" out 2.
'b( Pesos o+ Assets E&plo-e% P 7'2,400 1,&70,300 P2,'32,700
"erti$i#g Cir!u*atio#
,o. o+ E&plo-ees 12 25 37
2 71
A%/ertisi isin0
"mi#i$tratio#: P7&1,500 x 2 P7&1,500 x 71 >uma# ?e$our!e$: P42,700 x 32 P42,700 x '& ota* "e "ert rti$ i$i# i#g: g: Cir!u*atio#: 27.
32 '&
Circ irculaton
P22','35 P554,&'5 157,''4 P3&4,2
P 57, 57,&0 &00 0 + P3&4 P3&4,2 ,2 * P1,352,'00 + P&&,01 *
335,03' P&&,01
P1)"#2)!99 2)2#2)5!1 P3,5&4,'00
'a( A%&inistration 'P7$1)5!!(
>uma# ?e$our!e$ "erti$i#g Cir!u*atio#
ase P 21,700 7'2,400 1,&70,300 P2,24,400
10 2' '4
Allocation P7&1,500 203,10 500,1'0 P7&1,500
5 Question 27, (continued) Hu&an Resources 'P#92)7!! 3 P7$)15! P7$)15! * P57!)$5!( ase "erti$i#g 12 32 Cir!u*atio# 25 '& 37
"erti$i# i$i#g g: Cir!u*atio# io#:
2$)
P 57,&0 ,&00 + P203,10 + P1& P1&2,'72 P1,352,'00 + P500,1'0 + P3&&,17&
= =
Allocation P1&2,'72 3&&,17& P570,&50 P1)"#")2 2)2#!)9"$ P")5$#)!!
'a(
"mi#i$tratio# () >uma# ?e$our!e$ (>) "erti$i#g Cir!u*atio#
A%&inistration ase #/a #/a P 21,700 10 7'2,400 2' 1,&70,300 '4 P2,24,400
Equation: = > =
P7&1,500 + 21 > P42,700 + 10
7
= = = =
P7&1,500 + 2 21 (P42,700 + 1 10 ) P7&1,500 + P103,4'7 + 021 P&&4,'7 P03,50
> > >
= = =
P42,700 + 10 (P03,50) P42,700 + P0,35 P5&3,05
H. Resources ase 10 21 #/a #/a 12 2' 25 53 47
Administration allocations: >uma# re$ou $our!e$: P03,50 x 10 = P 0 0,305 "erti$i#g: P03,50 x 2' = P235,027 Cir!u*atio#: P03,50 x '4 = P57&,52& Human Resource allocations: "mi#i$tratio#: P5&3,05 x 21 = P122,450 "erti$i#g: P5&3,05 x 2' = P151,'05 Cir!u*atio#: P5&3,05 x 53 = P30,040
ire!t !o$t$ "mi#i$tratio# > ?e$our!e$
A%&in &inistr istra ation tion P7&1,500 (03,50) 122,450 P 0
H. Resou esourrce P42,700 0,35 (5&3,05) P 0
A%/er %/erti tissin0 in0 P 5 57,&00 235,027 151,'05 P1)"##)#"2
Circu ircula lati tion on P1,352,'00 57&,52& 30,040 P2)2#!)1$
' 29.
'b(
4epart&ent "mi#i$tratio# () "itoria* () Co**ege ext$ Pro. Pu$ ota*
A% A%&inistration ase #/a #/a P 144,000 ' 1,200,000 50 1,05',000 44 P2,400,000 100
Equation: = =
P450,000 + 010 P350,000 + 00'
04
= = = =
P450,000 + 010 (P350,000 + 00') P450,000 + P35,000 + 000' P4&5,000 P4&7,2&
= = =
P350,000 + 00' (P4&7,2&) P350,000 + P2,27' P37,27'
E%itorial ase 10 10 #/ a #/a 55 55 35 35 100 100
Administration Costs: "itoria*: P4&7,2& x 00' = P 2,27' Co**eg Co**egee text$: text$: P4&7, P4&7,2& 2& x 050 050 = 243,' 243,'4 4 Pro Pro. pu$ pu$: : P4&7 P4&7, ,2& 2& x 044 44 = 214 214,'&& ,'&& Editorial Costs: "mi#i$tratio#: P37,27' x 010 = P 37,2& Co**eg Co**egee text$: text$: P37,2 P37,27' 7' x 055 055 = P20&,' P20&,'02 02 Pro Pro. Pu Pu$: $: P37 P37,2 ,27' 7' x 035 35 = P13 P132,74 2,74' '
4epart&ent 4epart&e nt ire!t !o$t$ "mi#i$tratio# "itoria* ota*
"!.
'a(
A%&inistration A%&inistr ation P450,000 (4&7,2&) 37,2& P 0
6ee abo/e co&putations
E%itorial E%itori al P350,000 2,27' (37,27') P 0
Colle0e Tets P2,250,000 243,'4 20&,'02 P2)7!2)5
Pro+. Pubs. P 5 50,000 214,'&& 132,74' P1)297)#"#
7 6olutions to Proble&s Proble& 71 'a(
a!i#er8 $$em*8
48 Hours 2,000 1,'00 3,'00
555' 4444 10000
6uare :oota0e 1,00 3,200 5,100
3725 '275 10000
Allocation: Machiner-
a!tor8 "mi#i$tratio#: P12,000 x 555'% P12,000 x 4444% ui*"i#g a#" grou#"$: P105,000 x 3725% P105,000 x '275% ota*
Asse&bl-
P7 1,'72 P 57,32& 3,113 P110,7&5
Total costs after allocation: a!i#er8: P41',000 + P110,7&5 $$em*8: P3&0,000 + P123,21'
= =
'5,&&& P123,21'
P52',7&5 P503,21'
Factory overhead rates (based on machine machine hours): a!i#er8: P52',7&5 / 30,000 = P175' per our $$em*8: P503,21' / 22,&00 = P2207 per our
'b(
a!tor8 "mi#i$tratio# (P12,000):
ui*"i#g a#"
ase 1,100 2,000 1,'00 4,700
2341 4255 3404 10000
Allocation P 30,1 54,&0 43,11 P12,000
ui*"i#g a#" grou#"$ (P105,000 + P30,1 = P135,1):
a!i#er8 $$em*8 ota*
ase 1,00 3,200 5,100
3725 '275 10000
Total costs after allocation: a!i#er8: P41',000 + P54,&0 + P50,3'2 = $$em*8: P3&0,000 + P4311 + P&4,&37 =
Allocation P 50,3'2 &4,&37 P135,1
P521,252 P50&,74&
Factory overhead rates (based on machine machine hours): a!i#er8: P521,252 / 30,000 = P173& per our $$em*8: P50&,74& / 22,&00 = P2231 per our
& Problem 7-1 (continued) 'c(
a!tor8 a"m () ui*"i#g grou#"$ () a!i#er8 $$em*8
:actorA%&. #/a 1,100 2,000 1,'00
uil%in0 an% ;roun%s 1,200 #/a 1,00 3,200
#/a 23 43 34
Equation: = =
P12,000 + 1 P105,000 + 23
5'3
= = = =
P12,000 + 1 (P105,000 + 23) P12,000 + P1,50 + 0437 P14&,50 P155,757
= = =
P105,000 + 23(P155,757) P105,000 + P35,&24 P140,&24
Cost Allocations Factory Administration allocations: ui*"i#g a#" grou#"$: P155,757 x 23 = a!i#er8: P155,757 x 43 = $$em*8: P155,757 x 34 =
P35,&24 P'',7' P52,57
Buildin and !rounds !rounds allocations: a!t a!to or8 a"mi a"mi# #i$tr i$trat atio io# #: P140 P140,& ,&24 24 x 1 1 = a!i#er8: P140,&24 x 30 = $$em*8: P140,&24 x 51 =
P2' P2',757 ,757 P42,247 P71,&20
1 #/a 30 51
Total cost a+ter allocations: :. A%&in. P12,000 (155,757) 2',757 P 0
ire!t !o$t "mi#i$tratio# *"g a#"
uil%in0 < ;roun%s P105,000 35,&24 (140,&24) P 0
MachinerP41',000 '',7' 42,247 P525,223 P1751
Asse&blP3&0,000 52,57 71,&20 P504,777 P2214
Proble& 72 'a(
Machiner-
ai#te#a#!e: P250,000 P250,000 P250,000 Storeroom: P1&0,000 P1&0,000 P1&0,000 ota*
x 32/& /&' x 2'/&' x 2&/&' x 2' x 44 x 30
Asse&bl-
Pac=a0in0
P 3,023 P 75,5&1 P &1,35 4',&00 7,200 P13,&23
P154,7&1
54000 P135,35
Problem 7-2 (continued):
'b(
ire!t Co$t Seri!e "ept a**o!ate" !o$t ota* !o$t a.ter a**o!atio#
MachinerP '00,000 13,&23 P 73,&23
Asse&blP &2,000 154,7&1 P1,04',7&1
Pac=a0in0 P 43',000 135,35 P 571,35
a!tor8 oerea" rate$
P3'
P20&
P3174
ai#te#a#!e (P250,000): Storeroom: a!i#er8: $$em*8: Pa!6agi#g:
P250,000 P250,000 P250,000 P250,000
x x x x
14 32 2' 2&
= = = =
P35,000 &0,000 '5,000 70,000
Storeroom (P1&0,000 + P35,000 = P215,000) a!i#er8: $$em*8: Pa!6agi#g:
P215,000 x 2' P215,000 x 44 P215,000 x 30
= = =
P55,00 4,'00 '4,500
ire!t !o$t ai#te#a#!e !o$t Storeroom !o$t ota* !o$t
MachinerP '00,000 &0,000 55,00 P 735,00
Asse&blP &2,000 '5,000 4,'00 P1,051,'00
Pac=a0in0 P 43',000 70,000 '4,500 P 570,500
a!tor8 oerea" rate$
P3'&0
P221
P31'
'c(
ai#te#a#!e () Storeroom (S) a!i#er8 $$em*8 Pa!6agi#g
Maintenance ase #/a 14 32 2' 2&
6toreroo& ase 400 003 #/a #/a 3,500 025 ',000 043 4,100 02 14,000
Equation: = S =
P250,000 + 03S P1&0,000 + 14
= = 5& = =
P250,000 + 03 (P1&0,000 + 14) P250,000 + 5,400 + 0042 P255,400 P25',477
S S S S
P1&0,000 + 14 P1&0,000 + 14 (P25',477) P1&0,000 + P35,07 P215,07
= = = =
10 Problem 7-2 (continued) "aintenance allocations: Storeroom: P25',477 a!i#er8: P25',477 $$em*8: P25',477 Pa!6agi#g: P25',477
x x x x
14 32 2' 2&
= = = =
P P P P
#toreroom #toreroom allocations: ai#te#a#!e: P215,07 a!i#er8: P215,07 $$em*8: P215,07 Pa!6agi#g: P215,07
x x x x
03 25 43 2
= = = =
P ',477 P 53 5 3,77 P 2 2,&40 P '2 ' 2,'13
35 35,07 &2 & 2,073 '' '','&4 71 71,&13
Total cost a+ter allocations
ire!t !o$t ai# ai#te te#a #a#! #!ee Storeroom ota* !o$t
Maintenance P 250,000 (25',4 5',477 77)) ',477 P 0
6toreroo& P 1&0,000 35, 35,07 07 (215,07) P 0
/; ?ate$
MachinerP '00,000 &2,0 &2,073 73 53,77 P 73'050
Asse&blP &2,000 '',' '','&4 &4 2,&40 P1,051,524
Pac=a0in0 P 43',000 71,& 71,&1 13 '2,'13 P 570,42'
P3'&0
P221
P31'
Proble& 7" 1.
Pro%ucin0 4epart&ents A P&20,000 P'0&,000
u"gete" ma#u.a!turi#g oerea" Seri!e epartme#t @ to: (1&0/'00 x P200,000) (420/'00 x P200,000) Seri!e epartme#t A to: (12&/1'0 x P100,000) ( 32/1'0 x P100,000) ota*
'0,000 140,000 &0,000 P'0,000
Pre%eter&ine% &anu+acturin0 o/erhea% rates epart epartme# me#tt : P'0,0 P'0,000 00 / 12&,00 12&,000 0 ma!i# ma!i#ee our our$$ = epa epart rtme me#t #t : P7' P7'&, &,00 000 0 / 200, 200,00 000 0 our our$$ = >/erhea% cost o+ ?ob 155 ept : '0 '0 x P750 = ept : 40 x P3&4 = ota* !o$t 2.
P750 P750 per ma!i#e ma!i#e our our P3,& P3,&4 4 per per > >
P450 154 P'04
ota* u"gete" .a!tor8 oerea" ii"e" 8 tota* "ire!t *aor our$ Plant@i%e o/erhea% rate Cost o+ ?ob 155 ! ! P P.#!
20,000 P7'&,000
*
P1,72&,000 B 270,000 P .#! P"$#
11
Proble& 7# Asse&blP1,040,000
:inishin0 P &00,000
2&0,000 1&0,000 P1,500,000 B 50,000 P 30/our
120,000 120,000 P1,040,000 B 40,000 P 2'/our
ase 20 3'0 420 &00
025 45 525
Allocation P 500 ,000 10,500 P20,000
ase &,000 ',000 14 14,000
57 43
Allocation P40,000 30,000 P70,000
P1 P1 P400,000 ,000 40,000 P44,000 B &,000 P 5'125
P2 P'00,000 10,500 30,000 P'40,500 B 20,000 P 32025
a!tor8 oerea" u"get **o!atio# o. Seri!e epartme#t9$ !o$t: ai#te#a#!e: P400,000, 42:1& "mi#i$tratio#: P300,000, 30:20 ota* u"gete" .a!tor8 oerea" ii"e" 8 ma!i#e our$ a!tor8 oerea" rate$
Proble& 75
1
61 'P2!)!!!(
S2 P1 P2 62 'P9)5!! 3 P5!! * P7!)!!!(
P1 P2 rou#"e"
u"gete" .a!tor8 oerea" S1 !o$t S2 !o$t ota* !o$t ii"e" 8 Pre"etermi#e" oerea" rate$ 2. ".
P1,0&,000 / 30,000 >
=
P3'317 per >
D#"ii"ua* Eo$ ma8 ae re*atie*8 "i..ere#t amou#t$ o. time i# ea! "epartme#t or examp*e, i. P1 i$ ma!i#e i#te#$ie a#" P2 i$ *aor i#te#$ie, te "epartme#ta* oerea" rate$ ou*" proi"e a .airer a**o!atio# o. !o$t$ to Eo$
12
Proble& 7 1.
2.
Equation $: $: Equation %: %: Equation &: &:
C = = =
P40,000 + 20 P40,000 + 20C P20,000 + 30C + 10
#ubstitution: C = C = 'C = C =
P40,000 + 20 (P40,000 + 20C) P40,000 + P&,000 + 04C P4&,000 P50,000
= = =
P40,000 + 20 (P50,000) P40,000 + P10,000 P50,000
= = =
P20,000 + 30 (P50,000) + 10 (P50,000) P20,000 + P15,000 + 5,000 P40,000
6er/ice C allocation: Seri!e : P50,000 x 20 = Seri!e : P50,000 x 30 = Pro"u!i#g : P50,000 x 50 =
P10,000 P15,000 P25,000
6er/ice 4 allocation: Seri!e C: P50,000 Seri!e : P50,000 Pro"u!i#g : P50,000 Pro"u!i#g : P50,000
x x x x
20 10 30 40
= = = =
P10,000 P 5,000 P15,000 P20,000
6er/ice E allocation: Pro"u!i#g : P40,000 Pro"u!i#g : P40,000 ar6eti#g: P40,000
x x x x
40 30 20 10
= = = =
P1',000 P12,000 P &,000 P 4,000
Pro"u!i#g : P120,000 + P15,000 + P1',000 = P151)!!! 2"7)!!! Pro"u!i#g : P1&0,000 + P25,000 + P20,000 P 20,000 + P12,000 P 12,000 = $)!!! ar6eti#g =
13
Proble& 77 1.
Pro%ucin0 4epart&ent P1 P2 P 40,000 P47,'00
a!tor8 oerea" **o!atio# o. Seri!e epartme#t: S1: P14,400F ( 40% : 50%) S2: P1&,000 F ( 20% : 40%) ota* 2
S2 a**o!atio# (P1&,000): P1: P1&,000 x 20% P2: P1&,000 x 40% S1: P1&,000 x 40%
= = =
',400 ',000 P120,000
P 3,'00 7,200 7,200 P1&,000
S1 a**o!atio# (P14,400 + P7,200 = P21,'00): P1: P21,'00 x 40/0 = P ,'00 P2: P21,'00 x 50/0 = 12,000 P21,'00 Total &anu+acturin0 o/erhea% a+ter allocation P1: P40,000 + P3,'00 + P ,'00 = P 5")2!! )$!! P2: P2: P47,'00 + P7, P7,200 + P12,000 = ota* P12!)!!! "
S1 S2
= =
P14,400 + 40 S2 P1&,000 + 10 S1
Su$titutio#: S1 = S1 = 'S1 = S1 =
P14,400 + 4 40 (P1&,000 + 10 S1) P14,400 + P7,200 + 04 S1 P21,'00 P22,500
S2 S2 S2
P1&,000 + 10 (P22,500) P1&,000 + P2,250 P20,250
= = =
S1 a**o!atio#$: S2: P22,500 x 10 P1: P22,500 x 40 P2: P22,500 x 50
= = =
P2,250 P,000 P11,250
S2 a**o!atio#$: S1: P20,250 x 40 P1: P20,250 x 20 P2: P20,250 x 40
= = =
P&,100 P4,050 P&,100
Total &anu+acturin0 o/erhea% a+ter allocation P1: P40,000 + P ,000 + P4,050 = P 5")!5! P2: P2: P47,'00 + P11 P11,250 + P&,10 ,100 = )95!
&,000 12,000 P52,400
14 ota*
P12!)!!!
Proble& 7$
a.
A%&inistration Costs 'P75!)!!!( ase 5/14' '/14' 21/14' 101/14' 13/14'
!!ou#ti#g Promotio# Commer!ia* ?e$i"e#tia* Prop gmt ota* (rou#"e")
Allocation P 25,'&5 30,&22 107,&77 51&,&35 '',7&1 P750,000
Accountin0 Costs 'P#95)!!! 3 P25)$5 * P52!)$5( ase Promotio# P3'0,000 / P1,7'0,000 Commer!ia* P500,000 / P1,7'0,000 ?e$i"e#tia* P725,000 / P1,7'0,000 Prop gmt P175,000 / P1,7'0,000 ota* (rou#"e")
Allocation P10',504 147,22 214,4&7 51,772 P520,'&5
Pro&otion 'P"!)!!! 3 P"!)$22 3 P1!)5!# * P#97)"2( ase Commer!ia* P4,500,000 / P14,500,000 ?e$i"e#tia* P,500,000 / P14,500,000 Prop gmt P 50 500,000 / P14,500,000 ota*
Allocation P154,343 325,&34 17,14 P47,32'
6u&&ar- o+ Commer!ia*: Commer!ia*: ?e$i ?e$i"e "e#t #tia ia*: *: Prop Prop gmt gmt::
allocation P107,&77 P107,&77 + P147,22 P147,22 + P154,343 P154,343 = P51& P51&,& ,&35 35 + P214 P214,4 ,4&7 &7 + P325 P325,& ,&34 34 = P '',7 '',7&1 &1 + P 51,7 51,772 72 + P 17,1 17,14 4 =
b.
?ee#ue$ ire!t !o$t$ **o!ate" !o$t$ D#!ome (*o$$)
Co&&ercial P 4,500,000 (5,245,000) (410,142) P(1,155,142)
P 410,142 410,142 P1,0 P1,054 54, ,15 15' ' P 135 13570 702 2
Resi%ential P ,500,000 (4,5&,510) (1,05,15') P 3,&51,334
Prop. M0&t. P 500,000 (1,200) (135,702 ) P 1' 1'5,0&
e ?e$i"e#tia* epartme#t i$ te mo$t pro.ita*e it a retur# o# ree#ue$ o. 405% (P3,&51,334 / P,500,000)
15
Proble& 79 a
ota* P our$ u$e" ra#$.er pri!e ree#ue
= =
1,220 + '50 + 10 = P2 P2,0'0 2,0'0 x P40 = P&2,400
!tu !tua* a* Garia aria* *ee P P Co$t$ Co$t$ ota* P >our$ $e"
=
P0, P0,'4 '40 0 = 2,0'0
P44 P44 tra# tra#$. $.er er pri! pri!ee
e P40 tra#$.er pri!e i$ i#a"euate e!au$e te P epartme#t i$ *e.t it a *o$$ (.or i#ter#a* ea*uatio# purpo$e$) o. (P0,'40 H P&2,400) or P&,240
**o!ate a"mi#i$tratio# !o$t$ o. P450,000 a#" .ixe" P !o$t$ o. P300,000
"mi#i$tratio# (P450,000), 10:5:3 P-ixe" (P300,000), &0:345:240:25 ota* a**o!ate" ra#$.er !o$t$ ire!t !o$t$
8it P250,000 ',5'5 P31,5'5 4&,&00 200,000
:P P125,000 20&,'' P333,'' 2',000 255,000
8C P 75,000 21,73 P ',73 7,'00 340,000
Total P 45 450,000 300,000 P 750,000 &2,400 75,000
ota*
P5'&,3'5
P'14,''
P444,33
P1,'27,400
Proble& 71! a.
641 Costs 'P1)!5)!!!( ase S2 20/400 S3 30/400 P1 200/400 P2 150/400
0050 0075 0500 0375
x x x x
Cost P1,0'5,000 P1,0'5,000 P1,0'5,000 P1,0'5,000
= = = =
642 Costs 'P$#!)!!! 3 P5")25! * P$9")25!( ase Cost S3 200/2,000 010 x P&3,250 = P1 &00/2,000 040 x P&3,250 = P2 1,000/2,000 050 x P&3,250 = 64" Costs 'P1)1$5)!!! 3 P79)$75 3 P$9)"25 * P1)"5#)2!!( ase Cost P1 '&/170 040 x P1,354,200 = P2 102/170 0'0 x P1,354,200 =
Allocation P 53 53,250 7,&75 532,500 3,375 P1,0'5,000 Allocation P &,325 357,300 44','25 P &3,250 Allocation P 541,2&0 &12,520 P1,354,200
6u&&ar- o+ allocations : P1: P1: P3,7'0 P3,7'0,00 ,000 0 + P532,5 P532,500 00 + 357,30 357,300 0 + 541,'& 541,'&0 0 = P5,11 P5,11,4& ,4&0 0 P2: P2: P3,'00 P3,'00,00 ,000 0 + P3,3 P3,375 75 + 44','2 44','25 5 + P&12,5 P&12,520 20 = P5,25&, P5,25&,520 520 :actor- o/erhea% rates : P1: P1: P5,1 P5,11 1,4 ,4&0 &0 / 400, 400,00 000 0 = P12.9$ or P1".!! per 48H P2: P2: P5,2 P5,25& 5&,5 ,520 20 / 300, 300,00 000 0 = P17.5" or P17.5! per 48H
1'
Problem 7-10 (continued): (continued): b. o+ E&plo-ees P1 200 057 P2 150 043 350
S1: S2: S3:
:loor 6pace &00 044 1,000 05' 1,&00
o+ Hours '& 040 102 0'0 170
P4 P41 P '07,050
P1,0'5,000 x 057 P1,0'5,000 x 043 P&40,000 x 044 P&40,000 x 5' P1,1&5,000 x 040 P1,1&5,000 x 0'0
P42
P 457,50 3','00 470,400 474,000
ota*
P1,450,'50
711,000 P1,'3,350
:actor- o/erhea% rates P1: (P3,7'0,000 + P1,450,'50) B 400,000 = P5,210,'50 B 400,000 400,000 = P1" per 48H P2: (P3,'00,000 + P1,'3,350) B 300,000 = P5,23,350 B 300,000 300,000 = P1$ per 48H
c. 4epart&ent S1 S2 S3 P1 P2
641 ase #/a #/a 20 0050 30 0075 200 0500 150 0375 400
642 ase 400 01'7 #/a #/a 200 00&3 &00 0333 1,000 0417 2,400
64" ase 15 0073 20 00& #/a #/a '& 0332 102 047 205
Equations: S1 = S2 = S3 =
P1,0'5,000 + 1 1'7 S2 + 0 073 S3 P &4 & 40,000 + 05 S1 + 0& S3 P1,1&5,000 + 0 075 S1 + 0 0&3 S2
S1 S1 = S1 = 2S1 = S1 =
P1,0'5,000 P1,0'5,000 P1,205,2&0 P1,215,000
+ + + +
1' 1'7 (P&40,000 + 05 05S1 + 0 0& S3 S3) + 073S3 S3 P140,2&0 + 00&S1 + 01'S3 + 073S3 & &S3 0S3
S3 S3 = S3 = 2S3 = S3 =
P1,1&5,000 P1,1&5,000 P1,254,720 P1,2'4,&3
+ + + +
0 075S1 + &3 (P&40,000 + 05S1 + 0 0&S3) 0 075S1 + P',720 + 004S1 + 00&S3 0 07S1 0&S1
6ubstitutin0 64" S1 = P1,215,000 + 0 (P1,2'4,&3 + 0&S1) S1 = P1,215,000 + P113,&35 + 007S1 3S1 = P1,32&,&35 641 * P1)22$)2!2
17
Problem 7-10 (continued) 6ubstitutin0 641 S3 = P1,2'4,&3 + 0& (P1,33&,202) S3 = P1,2'4,&3 + P107,05' 64" * P1)"71)$9 6ubstitutin0 641 an% 64" S2 = P&40,000 + 0 05 (P1,33&,202) + 0 0& (P1,371,&') S2 = P&40,000 + P'',10 + P134,44' 642 * P1)!#1)"5 Allocations 641 allocations: S2: S2: P1,3 P1,33& 3&,2 ,202 02 S3: S3: P1,3 P1,33& 3&,2 ,202 02 P1: P1: P1,3 P1,33& 3&,2 ,202 02 P2: P2: P1,3 P1,33& 3&,2 ,20 02
x x x x
00 0050 50 007 0075 5 050 0500 0 0375 375
= + = =
P'', P'',1 10 0 P100 P100,3 ,3'5 '5 P'' P'',1 ,101 01 P50 P501,&2 1,&2' '
642 allocations: S1: S1: P1,0 P1,041 41,3 ,35' 5' S3: S3: P1,0 P1,041 41,3 ,35' 5' P1: P1: P1,0 P1,041 41,3 ,35' 5' P2: P2: P1,0 P1,041 41,3 ,35' 5'
x x x x
01' 01'7 7 00 00&3 &3 033 0333 3 041 0417 7
= = = =
P173 P173, ,0' 0' P&', P&',43 433 3 P34' P34',7 ,772 72 P434 P434,2 ,245 45
64" allocations: S1: S1: P1,3 P1,371 71,& ,&' ' S2: S2: P1,3 P1,371 71,& ,&' ' P1: P1: P1,3 P1,371 71,& ,&' ' P2: P2: P1,3 P1,371 71,& ,&' '
x x x x
007 0073 3 00 00& & 033 0332 2 04 047 7
= = = =
P100 P100,1 ,14 4 P134 P134,4 ,44' 4' P455 P455,4 ,4' ' P'&1 P'&1,& ,&32 32
ire!t !o$t$
641 641 P1,0'5,000
S1
(1,33&,202)
S2 S3
173,0' 100,14 0
P
P
642 642 &40,000
64" 64" P 1,1&',000
P41 P41 P3,7'0,000
P42 P42 P3,'00,000
'',10
100,3'5
'',101
501,&2'
(1,041,35') 134,44' P 0
&',433 (1,371,&') P 0
34',772 455,4' P5,231,342
434,245 '&1,&32 P5,217,03
ote: S1, S2, a#" S3 !o*um#$ are o.. "ue "ue to rou#"i#g :actor- o/erhea% rates P1 P1: P5,2 P5,231 31,3 ,34 41 / 400 400,000 ,000 = P2 P2: P5,2 P5,217 17, ,0 03 / 300 300,000 ,000 =
P1".!$ or P1" per 48H P17."9 or P17 per 48H
1&
Proble& 711
1.
;ene ;e nera rall :ac :acto torr- 4epa epart& rt&ent ent Cos Costs ts 'P12) P12)"" ""7 7( 4epart&ent Storeroom Cutti#g $$em*8 i#i$i#g ota*$
6. :eet 2,400 5,'00 4,&00 3,200 1',000
PercentAllocation 15 P 1,&51 35 4,31& 30 3,701 20 2,4'7 100 P12,337
6toreroo& Costs 'PP$)51! 3 P1)$51 * P1!)"1( 4epart&ent Cutti#g $$em*8 i#i$i#g ota*$
48H 3,'00 2,300 3,220 ,200
Percent 40 25 35 100
Allocation P 4,145 2,50 3,'2' P10,3'1
**o!atio# o. Seri!e epartme#t Co$t$ to Pro"u!i#g epatme#t ire!t Co$t
2.
;en. :ctP 12,337 (12,337)
P
0
6toreroo& P &,510 1,&51 (10,3'1) P 0
Cuttin0 P10,12 4,31& 4,145 P1&,'55
a#u.a!turi#g oerea" H Cutti#g ept 10,12 a# a#u.a!tur turi#g oerea"- $$e $$em*8 ept &,111 a# a#u.a! u.a!tu turi ri#g #g oere erea" a" H i# i#i$i i$i# #g ept ept &,7 &,7' ' a#u.a a#u.a!tu !turi# ri#g g oer oerea" ea" H
4,31& 3,70 3,701 1 2,4' 2,4'7 7 1,&5 1,&51 1
a#u.a!turi#g oerea" H Cutti#g ept a# a#u.a! u.a!tu turi ri#g #g oere erea" a" H $$e $$em m*8 *8 ept ept a# a#u.a! u.a!tu turi ri#g #g oere erea" a" H i# i#i$i i$i# #g ept ept a#u.a!turi#g oerea" H Storeroom o a**o!atio# $toreroom $t oreroom !o$t$
4,145 2,5 2,50 0 3,'2 3,'2' '
Asse&blP &,111 3,701 2,50 P14,402
47,4'
12,337
10,3'1
:inishin0 P &,7' 2,4'7 3,'27 P14,&&