McDuffy Paints is a division of Chemical Paint Corporation. The division manufactures nd sells paints used in a wide variety of applications. During the coming year, it expects to wll 30,000 cans for P10 per can. Duffy manages the division. He is considering producing her 30,000 or 50,000 cans during the period. Other information is presented in the schedule r the division, in cans: Beginning inventory Expected sales Selling price s Variable manufacturing cost Fixed manufacturing overhead cost (total) 30,000 P15.00 P 7.00 0000 P150,000 Fixed manufacturing overhead costs per can: Based on 30,000 cans P5.00 per can (P150,000 + 30,000) Based on 50,000 cans P3.00 per can (P150,000 + 50,000) Manufacturing cost per unit Based on 30,000 units P12.00 per can (P7 variable + P5 fixed) Based on 50,000 units Selling and administrative expense (all fixed) P10.00 per can (P7 variable + P3 fixed) P25,000
McDuffy Paints is a division of Chemical Paint Corporation. The division manufactures nd sells paints used in a wide variety of applications. During the coming year, it expects to wll 30,000 cans for P10 per can. Duffy manages the division. He is considering producing her 30,000 or 50,000 cans during the period. Other information is presented in the schedule r the division, in cans: Beginning inventory Expected sales Selling price s Variable manufacturing cost Fixed manufacturing overhead cost (total) 30,000 P15.00 P 7.00 0000 P150,000 Fixed manufacturing overhead costs per can: Based on 30,000 cans P5.00 per can (P150,000 + 30,000) Based on 50,000 cans P3.00 per can (P150,000 + 50,000) Manufacturing cost per unit Based on 30,000 units P12.00 per can (P7 variable + P5 fixed) Based on 50,000 units Selling and administrative expense (all fixed) P10.00 per can (P7 variable + P3 fixed) P25,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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