REQUIRED: 1. Determine the total manufacturing overhead costs that Legaspi Company should incur next month. 2. Legaspi makes a product that has P20.00 in materials costs per unit. It requires two hours of labor time and 45 minutes of machine time. Laborers earn P20 per hour. What is the product's per unit variable manufacturing cost? 3. Suppose that labor time for the product is expected to increase 30 minutes. Machine time will remain the same. By how much would the per unit variable manufacturing cost increase?

REQUIRED: 1. Determine the total manufacturing overhead costs that Legaspi Company should incur next month. 2. Legaspi makes a product that has P20.00 in materials costs per unit. It requires two hours of labor time and 45 minutes of machine time. Laborers earn P20 per hour. What is the product's per unit variable manufacturing cost? 3. Suppose that labor time for the product is expected to increase 30 minutes. Machine time will remain the same. By how much would the per unit variable manufacturing cost increase?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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