Cost data relating to the single product produced by the firm are given as: Direct materials→₱8.00; Direct labor→₱12.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱400,000; Variable selling, general and administrative expenses→₱4.00; Fixed selling, general and administrative expenses→₱900,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 40,000 units each period, the selling price per unit would be: a. ₱ 73.75 b. ₱ 61.25 c. ₱ 50.75 d. ₱ 107.63 e. ₱ 43.75 f. ₱ 35.00
Cost data relating to the single product produced by the firm are given as: Direct materials→₱8.00; Direct labor→₱12.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱400,000; Variable selling, general and administrative expenses→₱4.00; Fixed selling, general and administrative expenses→₱900,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 40,000 units each period, the selling price per unit would be: a. ₱ 73.75 b. ₱ 61.25 c. ₱ 50.75 d. ₱ 107.63 e. ₱ 43.75 f. ₱ 35.00
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Cost data relating to the single product produced by the firm are given as: Direct materials→₱8.00;
Direct labor→₱12.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱400,000; Variable selling, general and administrative expenses→₱4.00; Fixed selling, general and administrative expenses→₱900,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 40,000 units each period, the selling price per unit would be:
a. ₱ 73.75 b. ₱ 61.25 c. ₱ 50.75
d. ₱ 107.63 e. ₱ 43.75 f. ₱ 35.00
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