Harith Company's industrial photo-finishing division, Rho, incurred the following cost and expenses in 2021: Direct Materials Direct Labor Factory Overhead General, selling and administrative Totals VARIABLE P200,000 150,000 70,000 30,000 P450,000 FIXED P42,000 48,000 P90,000 During 2021, Rho produced 300,000 units of industrial photo-prints, which were sold for P2.00 each. Oslo's investment in Rho was P500,000 and P700,000 at January 1 and December 31, 2021 respectively. Harith normally imputes interest on investment at 15% of average invested capital. Assume that net operating profit was P60,000 and that average invested capital was P600,000. For the year ended, Rho's residual income(loss) was -45,000 150,000 60,000 -30,000

Harith Company's industrial photo-finishing division, Rho, incurred the following cost and expenses in 2021: Direct Materials Direct Labor Factory Overhead General, selling and administrative Totals VARIABLE P200,000 150,000 70,000 30,000 P450,000 FIXED P42,000 48,000 P90,000 During 2021, Rho produced 300,000 units of industrial photo-prints, which were sold for P2.00 each. Oslo's investment in Rho was P500,000 and P700,000 at January 1 and December 31, 2021 respectively. Harith normally imputes interest on investment at 15% of average invested capital. Assume that net operating profit was P60,000 and that average invested capital was P600,000. For the year ended, Rho's residual income(loss) was -45,000 150,000 60,000 -30,000

Name: Harith Company's industrial photo-finishing division, Rho, incurred t
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Description: Harith Company's industrial photo-finishing division, Rho, incurred the following cost andexpenses in 2021:Direct MaterialsDirect LaborFactory OverheadGeneral, selling andadministrativeTotalsVARIABLEP200,000150,00070,00030,000P450,000FIXEDP42,00048,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Harith Company's industrial photo-finishing division, Rho, incurred the following cost and expenses in 2021: Direct Materials Direct Labor Factory Overhead General, selling and administrative Totals VARIABLE P200,000 150,000 70,000 30,000 P450,000 15% FIXED P42,000 48,000 P90,000 During 2021, Rho produced 300,000 units of industrial photo-prints, which were sold for P2.00 each. Oslo's investment in Rho was P500,000 and P700,000 at January 1 and December 31, 2021 respectively. Harith normally imputes interest on investment at 15% of average invested capital. For the year ended December 31, 2021, Rho's return on average investment was 10% 8.6% -5%
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