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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Additional information for Buena company:
Buena company manufactures a single product and has the following cost structure direct materials 72
Additional Information for MANO company:
MANO Company produces a single product. Last year, ABC manufactures 17,000 units and sold 13,000 unit
Transcribed Image Text: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
Php153,000
110,000
Direct Labor
Variable manufacturing overhead
Fixed manufacturing overhead
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:
Transcribed Image Text:Buena Company manufactures a single product and has the following cost structure:
Variable costing per unit
Direct Materials
Php72
Direct labor
96
Variable manufacturing overhead
Variable selling and administrative
24
48
Fixed Costs per month
Fixed manufacturing overhead
Fixed selling and administrative costs
Php2,400,000
1,400,000
The Company produces 24,000 units each month
Determine the unit product cost under variable costing
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