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Natio What are the fixed overhead costs of making the component? Do not use money sign. Sample format: 11,111 NUBD's shop can make 1,000 units of a necessary component with the following costs: Direct materials Direct labor Variable overhead Fixed overhead P64,000 P16,000 P8,000

Natio What are the fixed overhead costs of making the component? Do not use money sign. Sample format: 11,111 NUBD's shop can make 1,000 units of a necessary component with the following costs: Direct materials Direct labor Variable overhead Fixed overhead P64,000 P16,000 P8,000

FINANCIAL ACCOUNTING
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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Nation What are the fixed overhead costs of making the component? Do not use money sign. Sample format: 11,111 NUBD's shop can make 1,000 units of a necessary component with the following costs: Direct materials Direct labor Variable overhead Fixed overhead P64,000 P16,000 P8,000 The company can purchase the 1,000 units externally for P104,000. The unavoidable fixed costs are P5,000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part.
Transcribed Image Text:Nation What are the fixed overhead costs of making the component? Do not use money sign. Sample format: 11,111 NUBD's shop can make 1,000 units of a necessary component with the following costs: Direct materials Direct labor Variable overhead Fixed overhead P64,000 P16,000 P8,000 The company can purchase the 1,000 units externally for P104,000. The unavoidable fixed costs are P5,000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part.
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