NUBD Manufacturing recently completed and sold an order for 50 units that had the following costs: Direct materials Direct labor (1,000 hours at P8.50/hr) Variable overhead (applied on the basis of direct labor hours) Fixed overhead (applied at the rate of 15% of variable costs) P1,500 8,500 4,000 P15.400 The company has now been requested to prepare a bid for 150 units of the same product.

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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If an 80% learning curve is applicable, NUBD’s total cost on this order would be estimated at

A. P26,400
B. P37,950
C. P31,790
D. P38,500
E. P27,600
NUBD Manufacturing recently completed and sold an order for 50 units that had the
following costs:
Direct materials
Direct labor (1,000 hours at P8.50/hr)
Variable overhead (applied on the basis of direct labor hours)
Fixed overhead (applied at the rate of 15% of variable costs)
P1,500
8,500
4,000
P15.400
The company has now been requested to prepare a bid for 150 units of the same
product.
Transcribed Image Text:NUBD Manufacturing recently completed and sold an order for 50 units that had the following costs: Direct materials Direct labor (1,000 hours at P8.50/hr) Variable overhead (applied on the basis of direct labor hours) Fixed overhead (applied at the rate of 15% of variable costs) P1,500 8,500 4,000 P15.400 The company has now been requested to prepare a bid for 150 units of the same product.
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