NUBD Co.'s unit cost of manufacturing and selling a given item at an activity level of 10,000 units per month are: Manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead Selling expenses Variable Fixed P39 9. 8. 9. 30 11 The company desires to seek an order for 5,000 units from a foreign customer. The variable selling expenses will be reduced by 40%, but the fixed costs for obtaining the order will be P20,000. Domestic sales will not be affected by the order.

NUBD Co.'s unit cost of manufacturing and selling a given item at an activity level of 10,000 units per month are: Manufacturing costs: Direct materials Direct labor Variable overhead Fixed overhead Selling expenses Variable Fixed P39 9. 8. 9. 30 11 The company desires to seek an order for 5,000 units from a foreign customer. The variable selling expenses will be reduced by 40%, but the fixed costs for obtaining the order will be P20,000. Domestic sales will not be affected by the order.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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