ENEROW Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plant normally operates five days a week on a two eight-hour shift. Each year, the factory is closed twelve (12) working days for holidays. Machinery is idle 750 hours for cleaning, oiling and maintenance. Normal sales averages 110,000 units a year over a five-year period. The expected sales volume for the year is 112,500 units. The fixed cost of operating the plant amounted to P385,000 per year. Compute the fixed unit costs under Practical capacity.

ENEROW Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plant normally operates five days a week on a two eight-hour shift. Each year, the factory is closed twelve (12) working days for holidays. Machinery is idle 750 hours for cleaning, oiling and maintenance. Normal sales averages 110,000 units a year over a five-year period. The expected sales volume for the year is 112,500 units. The fixed cost of operating the plant amounted to P385,000 per year. Compute the fixed unit costs under Practical capacity.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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