19. Vernz Writer produces and sells boxes of signing pens for P1,000 per box. Direct materials are P400 per box and direct manufacturing labor averages P75 per box. Variable overhead is P25 per box and fixed overhead is P12,500,000 per year. Administrative expenses, all fixed, run P4,500,000 per year, with sales commissions of P100 per box. Production is expected to be 100,000 boxes which is met every year. For the year just ended, 75,000 boxes were sold. What is the inventoriable cost per box using variable costing. *
19. Vernz Writer produces and sells boxes of signing pens for P1,000 per box. Direct materials are P400 per box and direct manufacturing labor averages P75 per box. Variable overhead is P25 per box and fixed overhead is P12,500,000 per year. Administrative expenses, all fixed, run P4,500,000 per year, with sales commissions of P100 per box. Production is expected to be 100,000 boxes which is met every year. For the year just ended, 75,000 boxes were sold. What is the inventoriable cost per box using variable costing. *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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