bartlebvoomld. the cheaters EDIT ECQ Inc. is in the process of completing labor negotiations for the coming year. Part of these negotiations call for an increase in the base wage rate for direct labor from P10 to P12 per hour, with a corresponding increase in fringe benefits. At present, fringe benefits amount to 35% of total wages, and this percentage will remain unchanged with the new contract. The present labor standards call for 8 direct labor hours per unit of output. Other conversion costs amount to P40 per unit, of which 75% is for variable costs. Materials costs amount to $8 per unit. Administrative costs are fixed and amount to P10 per unit at the present production level. Products are sold with a gross margin of 30% on sales. Compute the new selling price to be charged if there is no increase in productivity as a result of the new labor contract. •.. More Add to Story
bartlebvoomld. the cheaters EDIT ECQ Inc. is in the process of completing labor negotiations for the coming year. Part of these negotiations call for an increase in the base wage rate for direct labor from P10 to P12 per hour, with a corresponding increase in fringe benefits. At present, fringe benefits amount to 35% of total wages, and this percentage will remain unchanged with the new contract. The present labor standards call for 8 direct labor hours per unit of output. Other conversion costs amount to P40 per unit, of which 75% is for variable costs. Materials costs amount to $8 per unit. Administrative costs are fixed and amount to P10 per unit at the present production level. Products are sold with a gross margin of 30% on sales. Compute the new selling price to be charged if there is no increase in productivity as a result of the new labor contract. •.. More Add to Story
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:bartlebvoomld.
the cheaters
EDIT
ECQ Inc. is in the process of completing labor negotiations for the coming year. Part of
these negotiations call for an increase in the base wage rate for direct labor from P10
to P12 per hour, with a corresponding increase in fringe benefits. At present, fringe
benefits amount to 35% of total wages, and this percentage will remain unchanged
with the new contract. The present labor standards call for 8 direct labor hours per
unit of output. Other conversion costs amount to P40 per unit, of which 75% is for
variable costs. Materials costs amount to $8 per unit. Administrative costs are fixed
and amount to P10 per unit at the present production level. Products are sold with a
gross margin of 30% on sales.
Compute the new selling price to be charged if there is no increase in productivity as a
result of the new labor contract.
•..
More
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