In the cost production why is there a values for the labor cost when it is supposed to. be subcontracted? Price Per Liter (in Pesos)10,000Salaries Per Month(in pesos)Cost Per Liter Salesman50,000Labor40% of PriceAssistant30,000Materials40% of PriceTotal Salaries80,000Selling Expenses Per Month (Pesos)50,000 Miscellaneous (Per Month)10,000 Cost ProductionParticularsJanuaryFebruaryMarchLabor Cost (Subcontracted)000Material Cost200,000400,000920,000Total Cost (production budget)$200,000$400,000$920,000 is this the right answer in cost production?

Given in the question: Price per Liter = 10,000 Materials cost per liter = 40% of Price Labor cost…

Answered: In the cost production why is there a…

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In the cost production why is there a values for the labor cost when it is supposed to. be subcontracted?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

In the cost production why is there a values for the labor cost when it is supposed to. be subcontracted?

Price Per Liter (in Pesos)	10,000	Salaries Per Month	(in pesos)
Cost Per Liter		Salesman	50,000
Labor	40% of Price	Assistant	30,000
Materials	40% of Price	Total Salaries	80,000
Selling Expenses Per Month (Pesos)	50,000
		Miscellaneous (Per Month)	10,000

Cost Production

Particulars	January	February	March
Labor Cost (Subcontracted)	0	0	0
Material Cost	200,000	400,000	920,000
Total Cost (production budget)	$200,000	$400,000	$920,000

is this the right answer in cost production?

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