MANO Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Php153,000 110,000 204,000 255,000 Sales were Php780,000 for the year, variable selling and administrative expenses were Php88,400, and fixed selling and administrative expenses were Php170,000. There was no beginning inventory. Assume the direct labor is a variable cost. The contribution margin per unit was:

MANO Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Php153,000 110,000 204,000 255,000 Sales were Php780,000 for the year, variable selling and administrative expenses were Php88,400, and fixed selling and administrative expenses were Php170,000. There was no beginning inventory. Assume the direct labor is a variable cost. The contribution margin per unit was:

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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